The Global Push for REEs

Source: Investment U, Tony D'Altorio (10/12/10)

"China realized the value REE extraction long ago."

Bautou may look like a quiet, unassuming city in the middle of Inner Mongolia. But the home to two million finds itself in the middle of a global controversy. Bautou is the center of China's rare earth element (REE) production.

You don't have to dig that deep to find that rare earths aren't actually that rare. They're just difficult to extract and can often be environmentally difficult. China realized that REEs were worth the effort long ago, accelerating production under the late Deng Xiaoping. He used to compare China's rare earths to Saudi Arabia's oil.

Yet the U.S. moved in the opposite direction for years. Once the world's leading producer, it now mines none of it, mostly because of onerous environmental regulations. The government has begun to look into starting up again. But that means little for now.

In April, the Government Accounting Office reported that rebuilding the nation's rare earth supply chain could take up to 15 years. And, according to the same source, the U.S. needs patents currently held by foreign companies.

Perhaps the country can learn something from Japan, the world's biggest rare earths consumer. It has no supplies of its own though, so it's searching elsewhere. . .without waiting for study results.

This makes sense since most geologists think up to two-thirds of the world's deposits of rare earths lie unexploited, outside of China. That's a good thing too, given it uses much of the REEs it extracts for its own burgeoning high-tech industries.

As China grows, it will have less and less to sell to other countries. Recognizing this, Japanese companies have taken to scouring Canada, India, Australia, Vietnam, Kazakhstan, Brazil and Mongolia to find the next big deposits.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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