day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for Rare EarthsGary Billingsley – Exec C...
GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organ...
TSX.V: GWG / OTCQX: GWMGF <br />info@gwmg.ca<br />OUTLOOK FOR RARE EARTHS<br />Objective Capital Global Mining Investment ...
Safe Harbour<br /><ul><li>Cautionary Note On Forward-Looking Statements
"Forward-looking statements include, but are not limited to, statements regarding projected processing capacity, output an...
Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements...
GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurre...
Fully Integrated Production Model<br />ALLOY SALES<br />LCM/GWTI ALLOY PROD’N<br />RE METAL SALES<br />METAL MAKING<br />R...
What Are Rare Earth Elements?<br />                        Unique optical and magnetic properties<br />LREE<br />HREE<br /...
Where Are Rare Earth Elements Used?<br />Vital to our standard of living<br />5<br />
World Mine Production and Reserves(tonnes REO)<br />Source: USGS Mineral Commodity Summaries, January 2010<br />6<br />
Global REE Demand Rising Rapidly<br />7<br />
Rising Demand For REE’s and ApplicationsIncreased REE Demand Comes From China <br />6<br />8<br />Source: Lynas Corp. usin...
China: Export Quota ReductionsChinese Rare Earth Export Quotas 2004 to 2009 (tonnes REO)<br />Source: 2005-2009, IMCOA; 20...
REO Prices Over The Last 12 Months<br />CeO2 US$/t<br />Dy2O3 US$/kg<br />La2O3 US$/t<br />Nd2O3 US$/t<br />Sm2O3 US$/t<br...
If Not China Then Where?Sample of Known RE Deposits<br />Source: Mariano<br />11<br />
Global Rare Earth Projects Under Development<br />A limited number of Rare Earth deposits with 2014/2015 production potent...
Global Rare Earth Projects Under Development<br />Honourable Mention: Production 2015+ ?<br />Sarfartoq TSXV:HUD<br />Nora...
Where Will Rare Earths Come From?Supply Sources (t REO)<br />14<br />Source: 2005-2009, IMCOA; 2010, Metal Pages and Lynas...
Projected Shortages 2014<br />15<br />Source: IMCOA; Lynas Corp.<br />
Attributes: Current RE Projects<br />Source: IMCOA, Company filings, websites and industry journals<br />16<br />
Optimistic Supply/Demand Imbalance 2014<br />FOR NdFeB MATERIALS IT WILL BE CLOSE!<br />17<br />
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Gary Billingsley: Outlook for Rare Earths (Day 1 - Session 1: Strategic metals and the clean-tech revolution)

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Day 1 - Session 1: Strategic metals and the clean-tech revolution

Outlook for Rare Earths

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speaker:
Gary Billingsley - Great Western Minerals

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  • GWMG business model: to production of permanent magnet alloys but not making magnetsSeparation and metal making are key aspects of the complete supply chain and right now nobody really does either outside ChinaNote that there is no market outside China for RE product produced at the”processing” stage, only for byproducts like phosphate
  • Slide shows the split between “light” rare earths (“LREE”) and “heavy” rare earths (“HREE”)
  • Rare earths are critical to green technology, lifestyle applications and defense applications
  • China has approximately 1/3 of the world’s RE reserves but are supplying 100% of the global demand-not sustainable in their view.
  • The graph shows general trends, but is somewhat misleading for individual rare earths
  • The table illustrates that while the demand for Res is increasing, that increased demand is almost entirely in China.
  • Recent reduction in the export quota has caused considerable turmoil in the RE market, represented by rocketing prices
  • Dramatic increases in prices coincide with announcement of reduced export quotas
  • Map showing that in the long term there is no shortage of potential rare earth production
  • Map showing projects with the potential to come into production in the near term
  • Map showing other projects with medium term production potential-a sampling, not a comprehensive list
  • Table showing the “pessimistic” listing of RE sources to 2014 and the potential shortfall
  • “Pessimistic” Supply/Demand showing potential shortages for individual REs
  • Note high capital cost for several projects vs output; note large quantity of cerium produced and very modest amounts of Dy.
  • Supply/Demand for the “optimistic” case where all projects go into production (except Kvanefjeld).Note that while there is a large surplus in total, Nd and Dy may still end up in short supplyFor magnet materials it will be difficult to meet demand
  • Gary Billingsley: Outlook for Rare Earths (Day 1 - Session 1: Strategic metals and the clean-tech revolution)

    1. 1. day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for Rare EarthsGary Billingsley – Exec Chairman, Great Western Minerals<br />
    2. 2. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
    3. 3. TSX.V: GWG / OTCQX: GWMGF <br />info@gwmg.ca<br />OUTLOOK FOR RARE EARTHS<br />Objective Capital Global Mining Investment Conference<br />September 28, 29 2010 London, UK<br />
    4. 4. Safe Harbour<br /><ul><li>Cautionary Note On Forward-Looking Statements
    5. 5. "Forward-looking statements include, but are not limited to, statements regarding projected processing capacity, output and revenue, GWMG’s continued advancement of its mineral exploration, projects, processing operations and business plans.  When using this presentation, the words “potential”, “anticipate”, “estimate”, “forecast”, “believe”,  “expect”, “may”, “project”, “plan” and similar expressions are intended to be  among the statements to identify forward-looking statements."
    6. 6. Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Readers are advised to refer to GWMG’s current Annual Information Form available at www.sedar.com for a full description of risk factors.
    7. 7. GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation.</li></ul>2<br />
    8. 8. Fully Integrated Production Model<br />ALLOY SALES<br />LCM/GWTI ALLOY PROD’N<br />RE METAL SALES<br />METAL MAKING<br />REO SALES<br />SEPARATION<br />BY-PRODUCT SALES<br />PROCESSING<br />MINING<br />EXPLORATION<br />Enterprise profitability increases with each stage of processing<br />3<br />
    9. 9. What Are Rare Earth Elements?<br /> Unique optical and magnetic properties<br />LREE<br />HREE<br />4<br />
    10. 10. Where Are Rare Earth Elements Used?<br />Vital to our standard of living<br />5<br />
    11. 11. World Mine Production and Reserves(tonnes REO)<br />Source: USGS Mineral Commodity Summaries, January 2010<br />6<br />
    12. 12. Global REE Demand Rising Rapidly<br />7<br />
    13. 13. Rising Demand For REE’s and ApplicationsIncreased REE Demand Comes From China <br />6<br />8<br />Source: Lynas Corp. using data from industry participants, Roskill & IMCOA<br />
    14. 14. China: Export Quota ReductionsChinese Rare Earth Export Quotas 2004 to 2009 (tonnes REO)<br />Source: 2005-2009, IMCOA; 2010, Metal Pages<br />9<br />
    15. 15. REO Prices Over The Last 12 Months<br />CeO2 US$/t<br />Dy2O3 US$/kg<br />La2O3 US$/t<br />Nd2O3 US$/t<br />Sm2O3 US$/t<br />Eu2O3 US$/kg<br />Source: Asian Metal<br />10<br />
    16. 16. If Not China Then Where?Sample of Known RE Deposits<br />Source: Mariano<br />11<br />
    17. 17. Global Rare Earth Projects Under Development<br />A limited number of Rare Earth deposits with 2014/2015 production potential<br />Thor Lake TSX:AVL<br />Kvanefjeld ASX:GGG<br />Bayan Obo China<br />Hoidas Lake TSXV:GWG<br />Kutessay-TSXV:SRU<br />Mianning<br />Mountain Pass, CA Molycorp<br />Ionic Clays<br />Dong Pao-Sojitsu/Toyota Vietnam<br />Nolan’s Bore ASX:ARU<br />Steenkampskraal TSXV:GWG<br />Mount Weld ASX:LYC<br />Dubbo ASX:ALK<br />Potential Production by 2014/2015<br />Potential Production by 2012/2013<br />12<br />
    18. 18. Global Rare Earth Projects Under Development<br />Honourable Mention: Production 2015+ ?<br />Sarfartoq TSXV:HUD<br />Nora Karr TSXV:TSM<br />Strange Lake TSXV:QRM<br />Bokan TSXV:UCU<br />Bear Lodge TSXV:RES<br />Wigu Hill Montero (private)<br />Kangankunde ASX:LYC<br />Zandkopsdrift Frontier (private)<br />13<br />
    19. 19. Where Will Rare Earths Come From?Supply Sources (t REO)<br />14<br />Source: 2005-2009, IMCOA; 2010, Metal Pages and Lynas Corp.<br />
    20. 20. Projected Shortages 2014<br />15<br />Source: IMCOA; Lynas Corp.<br />
    21. 21. Attributes: Current RE Projects<br />Source: IMCOA, Company filings, websites and industry journals<br />16<br />
    22. 22. Optimistic Supply/Demand Imbalance 2014<br />FOR NdFeB MATERIALS IT WILL BE CLOSE!<br />17<br />
    23. 23. OBSERVATIONS<br />There is definitely a need to develop RE sources outside China for PM materials. It’s prudent for both China and ROW.<br />In the long term there are likely enough RE resources to supply the global RE market.<br />Sources of PM materials are likely to remain tight in the near term given that it takes 7 to 10 years, on average, to bring mining projects on stream, (in mining-friendly jurisdictions!).<br />The world likely does not need any more large “LREE” projects. The focus should be on projects that can supply significant “HREE” per tonne mined. Balance is important.<br />It is not enough just to bring RE sources on stream. We must also develop separating and metal making capability.<br />18<br />
    24. 24. TSX.V: GWG / OTCQX: GWMGF <br />info@gwmg.ca<br />THANK YOU<br />
    25. 25. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />

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