Rare earths is a term commonly used to describe the 15 chemically similar, lanthanide elements which appear together towards the bottom of the Periodic Table. Two other elements, yttrium and scandium, which have similar chemical properties, are often also referred to as rare earths. Rare earths can be divided into "light" rare earths and "heavy" rare earths and both are present to varying degrees in all rare earth deposits. Rare earths are therefore recovered and processed together before sequential separation into individual rare earth elements. Prices for individual rare earths in pure oxide form can vary significantly with, generally speaking, the heavy rare earths trading at higher values. It should be noted the highest value heavy rare earth elements, namely europium, terbium and dysprosium, are contained at elevated levels at Zandkopsdrift by comparison to a number of other similar deposits being evaluated globally. It is also noteworthy that both the thorium and uranium content of the Zandkopsdrift resource are relatively low, at average grades of 178ppm and 47ppm respectively.

The oxides produced from processing rare earths are collectively referred to as rare earth oxides. Although rare earths are relatively common in the earth's crust, they often do not occur in high enough concentrations (or occur along with high levels of radioactive elements) to make their extraction economic. The oxides that are produced from processing the rare earth elements constitute the basic material that can be sold to the market or further processed into metals or alloys.> Their location in the periodic table is shown below.

        


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

China is effectively the monopoly supplier of rare earth elements in the world today. It became the dominant supplier by producing and supplying rare earths in the 1990s and early 2000s at a price western producers could not compete. As a result China anticipated Chinese production in 2012 is 96,000 tonnes according to a November 2012 presentation by industry consultants Industrial Minerals Corporation of Australia (IMCOA).

Chinese demand for rare earths has also continued to rise with organic growth for current applications and new applications have been found for many of the elements and in 2012 this is estimated to be 69% of global demand, or 79,000 tonnes. This is expected to rise to 107,000 tonnes by 2016. At the same time, China’s supply of rare earths is expected to fall as China tightens up environmental controls and curb illegal mining.

                  

The Chinese government is actively trying to consolidate the rare earth industry into major mining groups to assert state control over the supply of rare earths which it views as a strategic asset. These groups will centre on the 3 main rare earth production areas in China:

BaoTou Hi-Tech representing the Inner Mongolia government is taking the lead in the BaoTou area which predominantly produces light rare earths

JiangXi Copper Corp is taking the lead in consolidation in the Sichuan area which produces mainly light rare earths

In the Ionic clay region in the south of China it is expected that consolidation will result in 3 producing groups, China Minmetals, Chinalco and China Mining. This is where most of China’s heavy rare earths will be produced

As a consequence of the rising demand and limited supply China has introduced export quotas which have limited the supply of rare earths to the rest of the world. The Chinese export quota has been reduced substantially since 2005, from 65,580 tonnes to 30,996 tonnes in 2012.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

In accordance with the Ministry of  Land and Resources, Hunan province has issued an announcement about controlling the mining amount of the first batch of tungsten, antimony and rare earth mines respectively of this year. Requirements are as followed:

Firstly, according to the first batch of index: the index of total tungsten concentrate (with 65% content of tungsten trioxide) control is 11,300 tons, among which the main mining index is 9250 tons and comprehensive utilization indicators are 2050 tons; the index of total antimony ores control is 18,000 tons; as for ion rare earth ores, the index comes to 500 tons.

The annual index of total mining control should be referenced to the second batch of the Ministry of Land and Resources, and the order of the comprehensive testing result will be issued respectively after the analysis of industrial policies, marketing direction and the implementing situation of the first batch of index.

                   

Secondly, Hunan will continue to suspend accepting  new registering application for mining and exploiting tungsten, antimony and rare earth ores, except for those situations having been ruled in the announcement.

Thirdly, all those municipal and continental Ministry of Land & Resources should spare no effort to do the verification work and submit to the provincial Ministry in written form before Mar. 10, 2013. The unfinished index of the total mining control will have no effectiveness.

Fourthly, department of Land and Resource of all levels must take effective measures to strengthen the regulation. All industries should sign a total mining contract, strict implementation of the statistical reporting system, to ensure that the total mining control would achieve tangible results.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Mining juniors, in general, and rare earth juniors, in particular, are contending with a lack of investment capital, and the writing is on the wall for many, as their projects remain too ‘early stage’, and much too ill defined with regard to end products and their markets, to attract capital (which is bearish and risk averse toward the resource sector at present).

Rare earth exploration juniors are at the edge of the cliff, and the culling of the herd is imminent for many of the blue sky/early stage projects that failed to deliver even an NI 43-101 compliant resource, much less an advance stage development document.

Such is the Darwinian nature of the markets, and there’s something to be said for the channeling of capital to the strongest individuals that remain standing in times of drought and famine.

                      

Two such survivors are Ucore (QTCQX: UURAF) and RER (ASE: REE), which are smallish, right size projects. In the case of Ucore their recent PEA delivered some metrics that set its Bokan property apart from the crowd…not the least of which is an almost absurdly low projection of the CAPEX required to get into production ($221M) and a product mix and form stated to be valuable enough to generate close to $100M per year in pre-tax profit (with a 43% IRR). That’s a bullish return on limited input capital. Ucore plans to be in production in 3 years or so, which places them at the forefront of the international race (along with, in my opinion, RER), to generate HREE’s outside of China.

Ucore estimates that they’ll be producing some 95 TPA of Dy; close to ½ of current US OEM automotive requirements and more than 10X the requirement of US Department of Defense (with which Ucore signed a strategic agreement in Q4 of 2012 for the purpose of advancing their HREE project). DOD is interested in Dy at least partially as an input component in unmanned drones in theaters of war (a topic that has garnered much media attention of late as a bulwark of the Obama administration’s offense strategy in the Middle East). Beyond this, UCU’s Dy output will be readily received by the American automotive industry, as prospective production of EVs and HEV’s continues to grow.

Ucore has yet another ace on the hole with the State of Alaska in their corner. The State has a long history of assisting in the financing of CAPEX to worthy mining projects, with very patient long term, below market interest loans over life of mine. Alaska has a $39B permanent fund, largely the outcome of a robust long term petroleum sector which is now falling into abeyance. So, they’re the rare sovereignty in the western world that has not only significant capital but also the wherewithal to invest in its own future. In Ucore’s case, the stated CAPEX is so low, that the State could singlehandedly guarantee Bokan’s rise to production (witness Alaska’s underwriting of $225M just for the port and road infrastructure at the Red Dog Mine in Central Alaska; an amount which ironically totals more than Bokan’s entire CAPEX requirement). As previously reported, the Goldilocks Principle will gain new credibility in the REE space, as it’s the right size project with the right products, Critical Rare Earths that will ultimately prevail. Ucore’s Bokan is such a project.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Rijkers has updated his report on Northern Minerals (ASX:NTU) following the recent financing package totalling A$58 million coming from Chinese interests. Rijkers’ view is that Northern Minerals has differentiated itself from other REE explorers by focusing on metallurgical studies in conjunction with exploration programs. The company is expecting first production of mixed rare earths oxides in 2016, dominated by the heavies (yttrium 61.6% and dysprosium 11.6%).

Rijkers is more optimistic than most about the sector – well, at least the HREE end of it. He believes the heavy rare earths will come back into focus in 2013 as global equity markets rally to near all-time highs due to a marked up-tick in economic growth expectations and improved political clarity.

“The REE market is itself very small but enormous downstream markets rely on their input at differing stages of the supply chain. REE demand is driven predominantly by two of the fastest-growing economically sensitive areas: renewable energy and high technology,” he writes.

And, despite the low level of investor interest in the HREE equity sector, the past two years have seen industry participants bolster their efforts to secure supply. These efforts have included:

The U.S. establishing a $120 million REE research institute to development new methods of REE production;
The U.S. passing legislation to boost domestic REE production (especially NdFeB magnets critical to defence applications);
Strategic alliance formed between the U.S. Department of Defence and Ucore Rare Metals for dysprosium;
Japan has invested $1.3 billion in REE recycling programs;
Japan has offered $110 million in subsidies for REE projects that reduce its dependency on China;
The E.U. and U.S. have taken legal action through the W.T.O against alleged protectionist Chinese policy;
South Korea and Japan have invested in REE projects through their respective state-owned investment vehicles; and China has tightened environmental controls, implemented policies to create HREE stockpiles and sanctioned investments internationally in HREE projects.
Yet, as he says, the results so far have been muted.

                        

Rijkers continues: “Despite the volatility experienced in the REE sector, taking prices from historically low levels to astronomic heights and subsequently back to the levels of 2010, there are two divergent themes emerging. The rise in HREEs initially reflected the tight demand/supply of the market but also soared to unsustainable levels as speculators entered the market when Japanese demand collapsed due to the Fukushima disaster. This resulted in consumers cutting back based on price destruction which was compounded by the economic and political risks that took hold of the global economy in 2012.

“However, underlying demand for HREEs remains firm due to the robust growth of the downstream industries that they service and a lack of new HREE sources outside of China. There are no substitution materials or alternative technologies that can replace HREEs’ critical role in their respective supply chains without a material cost being incurred. There is also a seismic shift occurring within the demand picture of HREEs which is dominated by China and historically domestic production has exceeded domestic demand. China announced in 2011 that their HREE reserves are finite (8-12 years) and as their REE requirements shift away from lower value LREE applications towards higher value HREE applications, it is likely that China will become a net importer of HREEs over time.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

“We must Rectify the rare earth industry, rectify the excessive and indiscriminate digging of domestic rare earth resources, rectify uncontrolled exploitation of rare earth resources, rectify the various contradictions in the development of the rare earth industry -including mining, smelting, trading and exporting. The Chinese government is duty bound to observe regulation on the sector. China’s restrictions on rare earth production and exports are meant to protect the environment and the resources, for which conduct should be above reproach.” Thus did Li Yizhong say before Chinese media on March 4 and March 6. Li Yizhong is the former minister of China’s Ministry of Industry and Information Technology (MIIT). He addressed “two summits” in Beijing this week, acting as the vice chairman of the Economic Commission of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC). Li was very big on the rectification theme, adding: “Should the rectification of China’s rare earth industries raise objections, especially from some Western countries, these are totally baseless. China will continue to firmly pursue the integration of its rare earth metals industry.”

Obviously, because of the accusations brought against China of breaking WTO rules on rare earth exports, the Mr. Li was not shy to express his annoyance at some Western countries, such as the European Union, the United States and Japan, which launched a rare earth complaint before the  WTO against China almost exactly a year ago.

The diversification of the supply of rare earth elements has gathered a consensus and an acceptance throughout the global market. In spite of facing the rare earth WTO lawsuit, China will continue regulating the sector whether it wins or loses the trade dispute. And why is that, you ask? We must be willing to concede that the Chinese rare earth industry has been, for lack of a better term, rather a bit of a dog’s breakfast in the past few years. The country’s rare earth industry had been harmed by illegal mining, chaotic production and exports. The export quota system helps curb the messy situation softening throat-cutting competition of rare earth exports while offering other producers of non-Chinese rare earths projects a chance to boost their production.

                        

Does this mean China’s export quota system will never be removed? Perhaps, but this is not a bad thing. Due to China’s rare earth metals industry relatively small scale, it features a high concentration rate with numerous businesses. At the same time, it lacks large enterprises with core competitiveness. Self-discipline in the industry is also weak, and vicious competition exists. Moreover, there are many problems that ensued due to a lack of sound legal regulations, therefore, it is difficult to avoid that some less than honorable ‘enterprises’, operating in a way that shows a low sense of responsibility and flagrant disregard for the law will certainly be seduced by the lure of high profits. They start to gamble, foregoing any moral principles in the pursuit of profits. Therefore, the integration of the rare earth industry is essential for China. Only after integrating the currently fragmented industry, will state-owned large enterprises have the sense and ability to control productivity and prices, even without government restriction and supervision. When this is achieved, and only then, China’s export quota system could be lifted.

China is believed to remain firmly integrated within the rare earth metals industry. The central government has set targets to encouraging mergers in rare earth industry sectors to enhance the state-owned large enterprises’ global competitiveness.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

During the two meetings, the member of the National Committee of the Chinese People's Political Consultative Conference, Li Yizhong, Minister of Industry and rare earth is a valuable and scarce mineral resources in the national economy, the defense industry, the state-of-the-art scientific purposes, it is not self-evident. The consolidation of the rare earth industry in China, for resources and environmental protection, some Western countries objection is entirely without justification.

Li Yizhong pointed out that, "eighteen large raised four modernizations simultaneous development, urbanization is on everyone's lips, and the focus of attention. Simply benign interaction with eighteen big words, industrialization and urbanization. Starting industrialization head speaking industrialized prerequisite for urbanization to urbanization create the conditions, laid the foundation. "

Li Yizhong, said rare earth is a valuable, scarce a mineral resources in the national economy, the defense industry, the state-of-the-art scientific purposes, it is not self-evident. China now accounts for about 23% of the world's large reserves, but provides 90 percent of the rare earth, "Comrade Xiaoping once said a word, the Middle East has oil, China has rare earth. Could have been our strengths, but due to various reason, this industry is a lot of confusion, to dig Luancai mining on private. "

Li Yizhong stressed, "We propose the reorganization of the rare earth industry, resource protection, environmental protection, which we should do, does not make sense for some of the objections of the Western countries. Rectify the development of rare earth industry is both a traditional, but also a strategic emerging industries. "

Rare Earth Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

 

Galileo, the emerging African Rare Earth exploration and development company, is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) of its Glenover Rare Earth Project (“Glenover Project or the Project”) in South Africa.

Economic Highlights:
Net Present Value (“NPV”) of US$ 512 million using a rare earth oxide (REO) basket price 2 of US$60.79 per kg of 99% REO and a discount rate of 8%. (NPVs at different rates are set out below e.g. NPV of US$783 million at a discount rate of 5%).
Internal Rate of Return (“IRR”) of 34.5 % for the Project.
REO production of 167,100 t (tonnes) in mixed high-grade REO chemical product over 24-year life of mine (LOM) on current resource estimate.
Ore production rate from 2.7 Mt stockpiles at 400,000 t per year 1 to 7.
Open-pit-mine ore production from 7.1 Mt at 400,000 t per year from year 8.
Waste to ore mine stripping ratio of 2.1 to 1 from year 8.
Initial capital investment US$233M, including a contingency of US$34M but excluding $57M for deferred and sustaining capital.

                                 


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Recently, Honda took the lead in the global establishment of recycling mechanism of the nickel-hydrogen battery in hybrid vehicles, which means they applied the rare earth they extracted from the the nickel-hydrogen battery of hybrid vehicles as nickel-hydrogen battery materials to practice. In this way, they realized the first cycle of rare earth resources in the world.

Previously, Honda has extracted rare earth oxides from the waste nickel-hydrogen batteries in the factories of Heavy Chemical Industry Corp. in Japan. This time, they did further electrolysis on these oxides and successfully extracted rare earth metals which can be used directly as the material for the anode of nickel-hydrogen battery. Adopting that measure, we can refine out rare earths with its purity up to 90%. The rare earths extracted are the same as those taken from the mines, but the recovery rate of the former rare earth can reach 80% or more.

At the very beginning of March, Heavy Chemical Industry Corp. has already provided Japanese battery factory with this kind of rare earth as materials for anodes of nickel-hydrogen batteries. The rare earth used by this batch of materials came from the nickel-hydrogen batteries of 386 new Honda hybrid vehicles, which can not be used after suffered from the great earthquake in the eastern Japan. From now on, as long as the used nickel-hydrogen batteries are accumulated to a certain amount, Honda will put them all into the same recycling way.

In spite of the nickel-hydrogen batteries, Honda will spare no effort to extract rare earth from all kinds of used materials so as to promote the recycling of rare resources. Later, at the same time as Honda trying his best to develop hybrid cars, he will constantly improve reusing them, recycling mechanism and reduce the pressure of environment of the mobile society.

Honda's nickel-hydrogen battery recycling mechanism: