PHILLIP Paulwell is insisting that Jamaica's foray into commercial production of rare earth metals is much more than dollars and cents.

'Since we made the initial announcement to the Parliament and Jamaica, two weeks ago, most of the attention attracted both locally and internationally has focused on the dollars and cents and the economic opportunity, but the project means much more,' Paulwell, the science, technology, energy, and mining minister said yesterday.

 He was speaking at a ground-breaking ceremony for a US$3-million pilot plant on the Jamaica Bauxite Institute (JBI) premises at Hope Gardens in St Andrew.

The pilot is being undertaken in partnership with researchers from Japanese company Nippon Light Metal Company Limited — a publicly traded aluminium supplier headquartered in Tokyo with annual revenues of over US$7 billion and more than 10,000 employees.

Nippon has confirmed high concentrations of rare earth elements in Jamaica's red mud deposits, and that those elements can be extracted efficiently.

Yesterday, Paulwell said that there is the prospect of great financial and strategic benefit to both nations, and that Jamaica stands to gain much more from working with Japan.

He said the project was the realisation of work done by Jamaican scientists who have been on the cutting edge of research on the area for years.

"We expect that all the various learning institutions will participate completely in the unfolding of this project," Paulwell said, adding that, while a planned three-storey, US$3 million building will be erected over three months, some of the preliminary work will be done by the JBI at its labs.

"All the equipment that is needed is either here or on the high seas, that's what we mean by being serious about doing business and getting things done in a timely way," he said in noting the three-month construction deadline.

Also addressing the ceremony, Prime Minister Portia Simpson Miller said the development is the second step to the establishment of a commercial plant to extract sediments which, if realised, will add significant value to the Jamaican economy.

"One indicator of the potential and significance of this public/private partnership is the vast levels of publicity and interest this news has generated globally. The JBI has been flooded with calls and enquiries, mainly because rare earth metals are critically important to industries, and commercial supplies are relatively scarce to some industries," Simpson Miller said.

"I believe we must balance the books, because it is very important, but at the same time we must balance people's lives. We can only do that if we have a strong economic foundation," she said, noting that "a critical part of that foundation is research and development but also innovation".

Said the prime minister: "This project will employ scientists and engineers, and we do have in Jamaica excellent scientists and engineers. Our universities need now to be more focused on training specialist students to take up jobs in fields associated with technology."

She said Jamaica will continue to look to the East, while building its ties with the West.

"We are standing on the threshold of something that could be truly revolutionary," she said, while emphasising that every care will be taken to protect the environment during the process.

"I am absolutely committed to the development of our economy, but it cannot be at the expense of the environment... I have made it clear to the Cabinet that every care must be taken as we seek to commercially exploit our rare earth elements," the prime minister said.

Rare earth metals are used in the creation of DVDs, cellphones, rechargeable batteries, digital cameras and most optic lenses, among other things.

 

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Although Greenland has no advanced mineral or metals production, it shows massive potential as a host for a number of minerals, including rare earth elements (REEs), and is being touted as a region to watch.

While the nation often remains under the radar with regard to political issues, it was under the media spotlight recently when Greenland’s premier, Kuupik Kleist, told the BBC that he will not favor the European Union (EU) over China — or any other investor — when granting access to the country’s prized rare earth deposits.

Kleist said that it would not be fair “to protect others’ interests more than protecting, for instance, China’s,” adding that the country’s resource sector will not be practicing any form of favoritism. He confirmed to journalists that he has discussed securing Greenland’s minerals for Europe with an EU parliamentary committee, but said that the country is in no position to exclude any foreign investors unless there is a specific issue.

Investors often associate the country’s close ties with Denmark as a sign that it may lean towards EU favoritism; however, it is important to remember that Greenland was one of the first territories to leave the EU back in 1985.

A project currently being developed by Greenland Minerals and Energy is ained at underlining just how much potential the area holds. The company’s focus, Kvanefjeld, is a large-scale delineated deposit recognized as one of the world’s largest REE resources and is estimated to contain a favorable mix of elements, including yttrium, according to the company’s website. A prefeasibility study estimates that the mine will be able to produce 43,729 tonnes of rare earth oxides and 3,895 tonnes of uranium a year across a 23-year lifespan

Strategic location

Based next to increasingly strategic shipping lanes, the North Atlantic island is attracting a lot of investor attention, especially as the melting of Arctic ice begins to pick up pace. While many are of the impression that Greenland is remote and logistically challenged, there are a number of benefits to its natural geography. It is strategically located between both North American and European markets, while Southern Greenland is located at a lower latitude than much of Alaska and Canada’s Yukon and Northwest Territories — all of which are popular areas amongst mineral explorers and miners.

Deep-water fjords cut into the country’s coastal fringes, meaning that the areas most suitable for exploration are close to potential deep-water port facilities.

The Chinese question

Interest in the country has exploded, and a number of western firms are already beginning to display signs of anxiety about China’s future role in Greenland’s mining sector. Some fear that China may attempt to exploit the territory in the battle for strategic control over Arctic resources and shipping routes.

Greenland’s government is backing a $2.35-billion iron mine project led by London Mining; it will be worth more than the island’s annual GDP and could attract as many as 5,000 Chinese workers (a third of the population of Nuuk, the country’s capital city) if it goes ahead. Greenland’s local government’s move last year to exempt projects of this scale from Denmark’s strict labor laws has also added to investor concerns. The project, which aims to lock down financing from China, would eventually result in the shipment of approximately 15 million metric tons of iron ore annually from fjords near Nuuk to China.

Speculation over the eastern giant’s intentions in the far north gained momentum last year when Chinese Premier Wen Jiabao visited Iceland and reached new heights when Chinese President Hu Jintao embarked on a visit to Denmark only two months later — the first state visit since the countries established diplomatic ties 62 years ago.

Martin Breum, the author of a book on Denmark’s role in the Arctic and Greenland’s oil possibilities, told Reuters that the iron ore project is not what has western governments, industries and intelligence agencies worried.

“Potential Chinese control of the rare earth elements in Greenland is scary to a lot of governments in the Western world,” said Breum, adding that China’s monopoly on REEs is “intolerable” to the west in the long term.

Government not concerned

While talk in Europe and North America revolves around a Chinese master plan to take over the Arctic and its resources, Greenland’s government is taking little notice. Kleist has downplayed concerns about Chinese plans to import labor for forthcoming operations by stating, “I do not see thousands of Chinese workers in the country as a threat,” according to Denmark’s Ritzau news agency.

In fact, he went on to commend the east, noting, “it’s fair to say countries like China and South Korea are far more active than Americans and Europeans in showing their interest in investing,” according to the BBC. A Reuters article also quoted him as saying, “Greenland is open for investments from the whole world, taking into account that the investors accept the regulations and requirements from Greenland in doing so.”

Regardless of whether one sides with the east or the west, this once easily forgettable island is poised for great things. Greenland remains highly prospective, yet underexplored, and is politically stable, mining friendly and boasts a non-biased attitude toward foreign investment. Perhaps investors need to shift attention away from geopolitics and realize that this very lucrative landscape might very well end up playing a key role in defining the REE market moving forward.

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Jamaican and Japanese officials on Monday launched a pilot project designed to investigate whether rare-earth elements can be commercially extracted from the island's bauxite waste.

Researchers with Japan's Nippon Light Metal Co. Ltd. believe they have found high concentrations of rare-earth elements in the island's red mud, a byproduct of bauxite refining into alumina, the basic material for manufacturing aluminum.

During the pilot project, researchers from the two countries will treat some 30 tons of dry red mud with acid to potentially extract some of the 17 rare-earth elements that are vital in manufacturing smartphones, plasma screens, wind turbines, satellites and numerous other high-tech products.

In Jamaica, where the economy is tough and the local currency is sliding, hopes are soaring that the pilot project at the Jamaica Bauxite Institute's headquarters could result in a commercial deal to extract rare-earth oxides from the red waste stored in containment ponds around mining grounds.

Prime Minister Portia Simpson Miller said that if the joint venture proves viable, it could be among the most "significant projects ever undertaken in Jamaica."

"This project represents the kind of industrial diversification that this country needs it if is to realize its economic potential and improve living standards for our people," Simpson Miller told Japanese dignitaries and Jamaican officials, scientists and businessmen.

Parris Lyew-Ayee, chairman of the Jamaica Bauxite Institute, said he believes that that since Jamaica's dry red mud deposits are stored in containment ponds he believes it will be simple and safe to harvest.

"There will be no mining operations and related pressures on the environment," said Lyew-Ayee, who described the long-discussed feasibility of extracting rare-earth elements from bauxite tailings as a sort of "holy grail" on the island, where treated red mud was formerly used to make bricks for building sites.

China is now the globe's main supplier of rare-earth elements. Worried by that dominance, manufacturers around the globe have been spurring searches for other sources that could be profitably mined.

Rare-earth elements aren't scarce, but few places exist with enough concentrations to be profitable. They are difficult to isolate in a purified form and require advanced technology to extract.

Paul Henderson, an honorary professor in the earth sciences department at University College London and who is not involved in the research in Jamaica, said the rock from which any bauxite is derived will ultimately determine its rare-earth contents. "Not all bauxites will have much in the way of rare earths," Henderson said in an email.

But Nippon Light Metal believes that the concentration of rare-earth elements in Jamaica's red mud is "significantly greater" than other international red mud sites and it hopes to eventually extract 1,500 metric tons of rare-earth elements per year, said Energy Minister Phillip Paulwell.

Nippon has agreed to invest $3 million in buildings and equipment for the pilot project while also being responsible for operating costs. Any rare-earth elements extracted during this phase will be jointly owned by Jamaica and the Japanese company. Negotiations for commercialization are expected to occur later.

Paulwell said in Parliament last month that rare-earth oxides were being traded at $3,500 per kilogram.

Speculating on the demand for rare-earth elements in the future "is a bit like looking into the tea leaves other than the fact that demand is sure to increase," Henderson said from Britain.

"By how much depends of course on the possible introduction of new technologies and range of other issues such as how much investment in green energies, especially wind turbines, changes," he said.
 

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China and the EU are locked in a trade row over rare earths, chemical elements essential for manufacturing cell phones. DW discussed the dispute with Reinhard Bütikofer, member of the EU Parliament's Energy Committee.

DW: Mr. Bütikofer, a row over natural resources with China has escalated in the past couple months. The EU, together with the US and Japan, has filed a complaint with the World Trade Organization (WTO). What will come of that complaint?

Bütikofer: The case remains under adjudication. I would assume that a decision will be made over the course of this year. It would be foolhardy to speculate about a result right now. Even if the US, Europe and Japan are successful, I would assume that the case will be appealed, so we probably won't know before 2014 what the legal situation is.

What are the concrete allegations against China?

I'm not among those who think that the EU's approach is particularly clever. The accusations are related in particular to the export restriction that China has implemented for rare earths. More precisely put: When China joined the World Trade Organization, it promised not to implement exactly this kind of export restriction, and now Beijing is no longer honoring that promise. I am not competent to judge the merits of the case. My perspective is a political one. I fear that if the EU wins at the WTO, that it will be a hollow victory. I believe that we have to change our strategy to one of cooperation.

At the moment, it looks as if the EU and China are on two different sides of the issue. But the forecasts suggest that China will become a net importer of rare earths. In this respect, one can certainly imagine that - with the appropriate efforts - both sides could reach common ground.
China tries to halt rare earth price dive

China has a monopoly on rare earth production. Talk is of 97 percent. So who should China import from?

At the moment, China is absolutely in the leading position. But new rare earth deposits are being found in many different countries around the world: Vietnam, Mongolia, Kazakhstan, Namibia, Canada, Australia and the US. There are also deposits in Europe - in Greenland, for example. These rare earths are not rare at all. Only about 30 to 35 percent of the world's deposits are found in China. Other countries just haven't moved forward with extraction up until now, for a host of different reasons. But now they are moving forward.

That means that the situation is not as dire as it has been made out to be? Rare earths are neither rare nor scare?

Rare earths are currently scarce. Above all, the so-called "heavy" rare earths are not discovered so often. But geologically speaking, they are not scarce. And we are not at all in a situation where we can be blackmailed - where we either have to confront the Chinese or simply do what Beijing wants us to do. There are opportunities for diversification. There are technological possibilities that would allow us to use rare earths more efficiently. There are recycling strategies that were never considered in the past.

The Chinese, for their part, have a big problem with the extraction of rare earths, because there are a lot of negative environmental effects. To put it dramatically, it's really an environmental mess. The Europeans and Japanese have a lot of technology that could help the Chinese overcome these difficulties. In this respect, both sides could be quite useful to each other.

The governance of raw materials on the international level also has to be reformed. It's no longer just a few industrialized countries that have a demand for these materials. The regulatory framework needs to reflect the reality that more and more countries are developing their own industries. And Europe could seize the initiative there with China and with a few African countries.

Do you think Europe and Japan should help China develop its extraction technology, instead of suing Beijing?

The Japanese have already offered that. I believe that it's the right path. Naturally, such business has to be based on reciprocity. China could provide Europe with a secure supply of rare earths for the next 15 years and receive technological know-how in exchange.

Are there already discussions about such an arrangement?

There's even a working group that has been set up between Europe and China to discuss such questions. But unfortunately, the working group has - to my knowledge - never met, because the daily agenda could not be agreed upon due to some sort of diplomatic dispute.

Reinhard Bütikofer was the federal chairman of Germany's Alliance 90/The Greens. Since 2009, he has been a representative in the European Parliament and a member of the Energy Committee. He's been chairman of the European Green Party since 2012.

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Rare Earth Minerals said it has applied to Greenland authorities for a strategic 38 sq km mineral exploration licence.

It said the licence's northeast boundary was about 500m from a Greenland Minerals and Energy licence that hosted the Kvanefjeld rare earth element, uranium and zinc deposit.

Chief executive David Lenigas said: "This is a very strategic block in Greenland as it immediately abuts the world class Kvanefjeld rare earth/uranium/zinc deposit.

"We have been active in Greenland for some time securing acreage around the Greenland Minerals rare earth oxides deposits," he said.

"We see this whole regional play as becoming more valuable as GGG gets closer to completing their feasibility study."
 

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JUNEAU-Senator Lesil McGuire, R-Anchorage, today introduced a resolution aimed at boosting the exploration and production of Rare Earth Elements (REE) in Alaska. Senate Joint Resolution 8 calls on Congress to support the efforts of Alaska to develop REEs for the benefit of the economic and national security of the United States.

“The United States used to be almost self-sufficient in rare earth elements, but now we almost completely rely upon foreign sources for those important minerals,” said Senator McGuire.  “We need to move now to become a dominant world player in the development of rare earth elements which are critical for military and economic security, as well as renewable energy systems.”

China currently produces 95-percent of the world’s rare earth elements, but reduced the exports of those elements by 54-percent between 2005 to 2010, and then another by nearly 50-percent in from 2010 to 2011.

“It poses a huge risk to our national and energy security to be forced to rely on other foreign nations to manufacture our high-tech military equipment as well as our wind turbines, solar panels, advanced batteries, and geothermal steam turbines,” said Senator McGuire.  “That’s why as a nation, we need to start developing and producing the rare earth minerals that we have in our own backyard.”The minerals are also needed for manufacturing almost all high-tech consumer goods including flat screen TVs, computers, tablets and cell phones.

“As China continues to withdraw its supply of rare earth elements from the world market, we need to be ready to fill those supplies or we will see devastating economic consequences,” said Senator McGuire.  “On the flip side, building rare earth element research and production facilities here in the 49thstate will create new job and career opportunities for Alaskans.”

The resolution also calls for the state to work with several federal agencies including the United States Geological Survey, to identify REE deposits in the state, develop an REE information database, and promote the development of Alaska’s REE industry.  Additionally, the resolution calls on state agencies that deal with permitting to expedite consideration and issuance of REE permits.

“So far, we have identified at least 70 sites in Alaska that contain rare earth elements.  Several experts have said it is likely that Alaska has one of the most significant rare-earth prospects in North America,” said Senator McGuire.  “If we play our cards right, this could secure our future as the lead supplier of America’s rare earth mineral needs.”

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ALJ Charles E. Bullock issued the public version of Order No. 44 (dated January 8, 2013) in Certain Sintered Rare Earth Magnets, Methods of Making Same and Products Containing Same (Inv. No. 337-TA-855).

According to the Order, ALJ Bullock granted a motion filed by Complainants Hitachi Metals, Ltd. and Hitachi Metals North Carolina, Ltd. (collectively, “Hitachi Metals”) to terminate the investigation based on withdrawal of the complaint as to Respondents TELEX Communications, Inc. (“TELEX”) and Electro-Voice, Inc. (“Electro-Voice”).  

The motion was based on Bosch Security Systems, Inc’s (“Bosch”) assertion that TELEX and Electro-Voice are not separate corporate entities independent of Bosch.  The Commission Investigative Staff supported the motion.  Accordingly, ALJ Bullock granted the motion and terminated the investigation as to TELEX and Electro-Voice.

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Ucore Rare Metals, a junior explorer looking for rare earth deposits in North America, is aiming to commence production at its Bokan project in Alaska by 2016.

Citing a Ketchikan Daily News article, Metal-Pages reported that Ucore, which is focused primarily on its Bokan-Dotson Ridge rare earth element (REE) property, plans to commence construction of the mine by 2014, contingent upon obtaining the necessary permits, before beginning operation two years later.

In November 2012, Ucore released a preliminary economic assessment (PEA) for the project. It shows a before-tax net present value of $577 million and an internal rate of return of 43 percent — impressive economics in a struggling market environment.

In July of last year, the company’s CEO, Jim McKenzie, told Rare Earth Investing News that Bokan Mountain is the largest NI 43-101 compliant heavy REE resource on United States soil; as a result, it has enormous strategic implications for the US, especially given that heavy REEs are the backbone of some of the technologies that are most important to the country’s economic future (for instance, transportation, clean energy, defense systems and medical science).

He added that the project could help challenge China’s domination of the market.

“We view the rare-earth space as a sort of race … Obviously China is withdrawing product from international markets fairly aggressively, and the US needs this product,” Metal-Pages quoted McKenzie as saying.

The Bokan property is enriched with heavy REEs, including dysprosium, terbium and yttrium, according to the company’s PEA.

Outlook for rare earth juniors

At the 2013 Vancouver Resource Investment Conference, John Kaiser of Kaiser Research gave Rare Earth Investing News his take on which — and how many — rare earth juniors are likely to succeed. He noted that companies focused on heavy REEs have a better chance of survival, commenting that Quest Rare Minerals and Tasman Metals both have a good chance at success.

Market round-up

China’s praseodymium-neodymium oxide market is in deadlock and business is thin, according to a report by Metal-Pages.

Market sources confirmed that prices for 99-percent praseodymium-neodymium metal remain at around $64,370 to $65,980 per tonne — unchanged compared with last week’s prices.

A producer based in Northern China confirmed that it has halted production and will begin again following the Chinese New Year holiday.

“We have no new orders. The market will be stable before the Chinese New Year and we except prices to rise after the festival,” he said.

Lanthanum oxide business is said to be thin on the Chinese spot market, as optical glass producers, the main downstream consumers, have postponed buying.

Prices for 99-percent grade lanthanum oxide are in the range of $6,900 to $7,200 per tonne.

A trader based in Southern China confirmed that he will not be restocking because consumers are reluctant to buy at higher prices.

“We are staying on the sidelines for the time being because we will not restart production before March,” a producer in Southern China said.

China’s europium oxide market is stagnant, with prices unchanged as the Chinese New Year holiday approaches. Industry sources have noted that participants will focus more on the market after the holiday.

Company news

Great Western Minerals Group reported on the status of its diamond drilling program at Steenkampskraal.

Objectives of the program include step-out drilling to investigate extension of the main monazite zone; infill drilling on areas of lower data density to upgrade inferred mineral resources to the indicated category; and selected orientated core drilling for geotechnical analyses in support of planned underground developments, according to a press release.

In addition to the drilling, Great Western has initiated exploration activities on the surrounding prospecting right, a 550-square-kilometer area that encompasses Steenkampskraal and hosts historic occurrences of monazite at surface.

Search Minerals announced results from the NQ drilling program on its Pesky Hill prospect in Labrador.

A company press release notes that heavy REE-zirconium-yttrium-niobium vein-hosted mineralization was intersected and that 38 shallow vertical holes ranging from 26 to 50 meters in depth were drilled as part of the phase-one exploration NQ drilling program.

The release also confirms that the zirconium showing contains some of the highest grade heavy REE vein mineralization and is open at depth.

Texas Rare Earth Resources engaged a representative to help determine possible strategic alternatives for its Round Top project.

The representative was hired in response to a preliminary indication of potential interest from a multi-billion-dollar resource firm located in Asia, according to the company’s press release.

Texas Rare Earth’s CEO, Dan Gorski, said, “[g]iven the interest level in our unique Round Top project, the Board felt it necessary to engage a representative to further explore potential interest from Asia. Demand for heavy rare earth elements is expected to continue to outstrip supply in the years to come. Given that the vast majority of such elements are used in the Asian regions, it is logical that interest from the region could be quite robust.”

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Jeb Handwerger: I notice with interest that the popular media is ignoring the World Trade Organization case against China for restricting exports of critical materials. This reduction of supply of the critical metals has a significant impact on the global economy.

These critical metals are not only crucial for your iPads and smartphones, but for our top secret, most advanced weaponry. Looking for substitutes for rare earths has proven to be a poor return on investment. For 50 years, they have been trying to find alternatives, only to find out that the chemical characteristics of rare earths are inimitable.

I have been a major proponent of advancing domestic strategic mines in the U.S. and Canada. Recently, the U.S. Department of Defense partnered with one of our rare earth recommendations to advance studies.

This move may show investors that the our national security is dependent on domestic critical rare earth production. I would not be surprised to see Canada make a similar move to support rare earth mining and development.

Recently during the quiet holiday season, China announced that they were tightening exports again on critical materials. Rare earth export quotas for next year will drop again. China claims that they are cutting back because of the weak global economy.

Nevertheless, stealthily China continues to announce infrastructure plans within the country, and has been stockpiling these critical materials for their own domestic demand. For months, we have been predicting a rebound in China’s economy as iron ore prices began rising.

Now we read headlines that China’s exports are very strong, even with a rising yuan . Risk assets such as the rare earths miners and uranium miners should rally on this news. More smart money from the investment community is realizing that China is far from a hard landing. In fact, they may be in the midst of a powerful recovery.

Exports have jumped to a seven-month highs despite the debt issues in Europe and the United States. This rebound in China may be a spark for the undervalued junior miners, which have been in a downtrend for close to two years as economists predicted a Chinese hard landing.

Many investors have been concerned about the recent Fed minutes, which indicated some sort of exit plan from quantitative easing. These accommodative actions to expand the Fed’s balance sheet to record levels have boosted bonds, the housing and the financial markets with easy money.

We may be witnessing capital flowing to growing economies such as China. All these actions over the past few years by Central Banks could be starting an inflationary cycle, which could boost the undervalued commodities such as uranium and industrial/strategic metals.

China’s equity markets are up around 20% in the past six months, far outpacing equity markets in Europe and the United States. Many do not realize yet that not only is China the world’s biggest supplier, but their own economy has grown to a point where they may become the largest consumer of these materials as major industries continue to move their factories to China.

China continues to control the rare earth industry despite attempts from companies like Molycorp and Lynas to begin production. Both companies have been plagued by delays and obstacles. Mining and refining rare earths is not an easy ballgame, as it requires advanced metallurgy and favorable geopolitics.

For decades, the world has been relying on cheap rare earths from China. Nevertheless, this will change rapidly over the next few years. The Chinese are especially short on the critical rare earths needed for permanent magnets, wind turbines, guided missiles and lighting, as they are building their own facilities to manufacture these finished products.

Molycorp and Lynas should be able to supply a large amount of light rare earths after they work out their issues. However, Lynas is still dealing with protestors in Malaysia, and Molycorp is dealing with delays and rising costs to start production. The disappointing performance in these two equities has hurt the entire sector.

In 2011 and 2012, we experienced a decrease in the price of the entire industrial metal sector as QE2 expired and the U.S. and European debt crisis intensified. However, we may be at a turning point for the undervalued rare earth and uranium miners as China leads a rebound.

Large amounts of quantitative easing in the U.S. were announced in the second half of 2012. The new Japanese government is also devaluing the yen to boost the Nikkei, while restarting nuclear plants. China is rebounding quickly, announcing infrastructure projects and starting construction on nuclear reactors. China is leading the world with building new reactors.

China’s decreasing rare earth exports, combined with declining production and rapidly depleting heavy rare earth resources, could cause an even greater supply shortfall in 2013. China is consolidating the rare earth industry and cutting down on critical metal smuggling. This will help the Chinese have greater control of their own domestic production.

I will closely follow in my free newsletter both the critical heavy rare earth space and the uranium sector as Asia rebounds, as these metals are crucial for China’s domestic needs. These rare metals are vital for our latest high tech devices, and there are only a few viable companies that can get into production in a timely manner.

In the rare earth mining sector, geopolitical support and infrastructure is crucial. In the uranium space, rising geopolitical tensions in Africa and the Middle East with Al Qaeda could cause increased interest in junior uranium developers in the Western Hemisphere.

Two ways of investing in these sectors is through the Rare Earth ETF and the Uranium Miners ETF. Both of these metals are critical for China’s clean energy initiatives and Middle Eastern energy independence. The ETFs were poor performers in 2012 as fears of a slowdown in China increased. Now, they may represent bottoming situations, which I will be following closely for my readers.

From http://etfdailynews.com

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German environmental research group, the Oeko-Institute has published a report criticising Australian Rare Earth mining company, Lynas Corporation's refining facility in Malaysia which is critical of its environmental impact and its poor storage of radioactive wastes.

According to the researchers, the storage of radioactive and toxic wastes on site does not prevent leachate from leaving the facility and entering ground and groundwater.

The report, conducted on behalf of the Malaysian NGO SMSL, found that the site lacks a sustainable concept for the long-term disposal of radioactive wastes under acceptable conditions.

The facility in Kuantan, Malaysia refines ore concentrate for rare earth metals. These strategic metals are used to produce catalysts, nickel metal hydride batteries and permanent magnets. The Institute point out that a number of emerging key- and future-technologies depends from the supply of these rare earths.

However, the ore concentrate being refined at the site also contains toxic and radioactive constituents such as Thorium.

The Oeko-Institute said that it was commissioned to perform a study to check whether the processing of the ore leads to hazardous emissions from the plant or whether dangerous waste will remain in Malaysia.

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