Rare Earths Industry Review February 2013


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The LCM Rare Earths News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the state of the global rare earth elements industry.

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Rare Earths Industry Review February 2013

  1. 1. LCM Rare EarthsNews Review February 2013 The LCM Rare Earths News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the state of the global rare earths industry.London Commodity MarketsCitibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQTel: 00 44 (0) 203 514 600 Fax: 00 44 203 514 6001 2/22/2013
  2. 2. Ucore Rare Metals set for Rare-EarthAlaska mine completion by 2016 Junior explorer Ucore Rare Metals Inc is engaged in searching for rare earth elements deposits in North America. They have announced previously that they aim to commence production at its Bokan mine in Alaska by 2016, according to local media reports. According to a report in Metal-Pages, Ucore which is focused primarily on its Bokan-Dotson Ridge rare earth element (REE) property. If successful in obtaining the necessarypermits, construction of the mine is planned to in 2014, then becoming fully operational in2016. Last year in an interview with Rare Earth Investing News Ucore’s CEO Jim McKenzie said of theBokan Mountain mine as being, the largest NI 43-101 compliant heavy REE resource on UnitedStates soil; as a result, it has enormous strategic implications for the US, especially given thatheavy REEs are the backbone of some of the technologies that are most important to thecountry’s economic future (for instance,transportation, clean energy, defence systems andmedical science).He added that the project could help challengeChina’s domination of the market.The Bokan property is particularly enriched withheavy rare earth elements, including the criticalelements dysprosium, terbium and yttrium.Approximately 40% (by weight) of the rare earthelements contained on the Dotson Ridge propertyare heavy rare earth elements, as disclosed in theCompany’s NI43-101 resource estimate technicalreport, filed on April 21st, 2011.The resource was completed by R. J. Robinson, aconsultant from Aurora Geosciences.Page | 1
  3. 3. Japanese pilot project to beginextraction of rare earths in Jamaica Japanese rare earth elements company Nippon Light Metals (NLM) has started extracting rare earth elements from its pilot plant in the Jamaica Bauxite Institute (JBI) in Hope Gardens, St. Andrew. The US $3 million pilot project will for the next three months begin extracting rare earth elements from the red mud which is rich in rare earth elements deposits. Jamaican officials are confident exports of rare earth elements have the potential to earn the country more in export revenues than its currentaluminium exports.Rare earth elements or lanthanides as they are also known as are critical ingredients in today’shigh tech industries that manufacture products such as smart phones, powerful magnets usedin electric motors to lasers and military hardware.Many industries such as the electronics sectors, are highly dependent on supply andavailability of rare earth elements as they are key components in the manufacture of;computers, Liquid Crystal Displays (LCDs), hybrid automobiles, wind power turbines, energyefficient light bulbs, sensors, GPS technologies, CD and DVD drives, digital cameras, most opticlenses, communication devices and satellites, among others.Could Africa become the next rareearth elements frontier?Many of the exploration companies that set out to explore Africa’s rare earth elementspotential are now starting to report some positive progress with their rare earth elements(REE) projects on the continent.South Africa in particular has seen a of activity during the last quarter, the country and thecontinent as a whole is seen as key to the geopolitical tussle being fought to end China’sdominance in the rare earth elements market.A report last year concluded that Africa has enormous potential in that it contains “more thanhalf the world’s known deposits of carbonatites, a rock formation seen as perfect huntinggrounds for rare earth elements, as well as vast deposits of monazite sands which also containrare earth elements (REEs).Page | 2
  4. 4. The Chinese effect on the REE Market Rare earth elements (REEs) or rare earth metals are 17 chemical elements in the periodic table. While many of these elements are actually found abundantly in the earth’s crust, their geochemical properties and dispersion make them difficult to extract in the pure forms necessary for use in many critical industries. These rare earth metals are essential for industries such as electronics, aerospace and clean energy.Yttrium is used in energy efficient light bulbs and cerium is used in oil refineries as a fluidcatalytic cracking catalyst. The growing end-markets for REEs has made security of supply a topconcern for many industrial corporations and governments around the world.Since the 1990′s China has become a leading supplier of rare earth elements, in part becauseof their willingness to intensively mine the elements at the expense of the environment. Manycountries opted to close down their mining and extraction operations and simply import rareearth metals from China, as prices were relatively cheap.However the world received a wake-up call when China began to impose export restrictions onrare earth metals and deeming them now as a strategic resource. Some analysts believe thiswas a policy to encourage high tech industries to move their manufacturing operations toChina, where supplies and prices are more stable.China maintains that the decision was both strategic and part of a wider effort to minimise theenvironmental impact.Rare earth metals prices could be setfor a boost – reportA report by a leading investment website recently hinted at the possibility of imminent pricerises for various raw materials, including rare earth metals.According to the report, the EU commission has announced that more funds should bededicated to rare earth elements research, in particular focusing on recycling and reducingwaste of rare earth elements.The announcement was based on the fact that rare earth elements remain difficult to source,with the EU still dependent almost exclusively on China for imports of rare earth elements.Page | 3
  5. 5. Unfortunately, the report points out, the technology for recycling rare earth elements is stilllargely hypothetical and it will have little impact on the actual mining of rare earth elementsfor some time to come.Japan has explored the recycling route with even greater urgency and yet its technologycompanies still rely on imported Chinese rare earth elements.The EU commissioner has announced steps to improve the supply of rare earth elements.The proposed steps, at least initially, have less to do with finding efficient recycling techniquesthan they do with simplifying trade legislation to speed up the import process.About London Commodity MarketsWith over a century of combined experience in the rare earth elements and alternative investments market, our team atLondon Commodity Markets have a proven track history of delivering excellent consultation as well as an unrivalled service toall our clients.As a result of this unrivalled standard of service, quality advice and ethical approach to the marketplace, London CommodityMarkets have become the globe’s fastest growing rare earth elements and alternative investments company.www.londoncommoditymarkets.comHEAD OFFICECitibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQTel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001Email: info@londoncommoditymarkets.comHome Counties OfficeSuite 1A, Park Street, Maidenhead, Berkshire SL6 1SLT: 00 44 (0) 203 393 3176Disclaimer:This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potentialproject and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to beconstrued as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription orpurchase of securities. This document does not take into account the recipient’s particular investment objectives or financial situation. Before making any investmentdecision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London CommodityMarkets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing andprojections will be available to the recipient.London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare EarthElements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) orFinancial Services Compensation Scheme (FSCS).The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service.London Commodity Markets, directors or any of its staff, agents, creators and administrators of londoncommoditymarkets.com website shall not be liable for any errors ordelays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternativeinvestments and such should be regarded as high risk.LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.Page | 4