China holds 95% of the worlds rare earth minerals deposits and has shown its willingness to hold the

Rare earth compounds are used in many devices that are used world wide every minute of the day. Things like: Your computer memory, DVD's, rechargeable batteries, mobile phones, car catalytic converters, magnets, fluorescent lighting and alot more. China has 95% of the worlds rare earth deposits and does not allow even part
foreign investment in its rare earth mining yet it wants to foreign deposits as well.

A rare earth deposit is located at Lynas Corporation's Mount Weld in south-west Australia. In May 2009, the China Non Ferrous Metal Mining Company tried to acquire a 51% stake in Lynas but was unsuccessful due to intervention by the Australian government, which did not want China to take control of the mine. Mount Weld is set to commence operations next year.

China holds a monopoly over the minerals, it supplies 95% of the elements to the rest of the world. 2010, it slashed its export quotas for the fifth year in a row, creating an increased demand for the minerals in the US, Canada and Australia.

China can and has shown its willingness to hold the world at ransom.

This fear was fuelled by the country's recent ban on rare earths to Japan. In September 2010, Tokyo and Beijing Argued over Japan's detention of a Chinese fishing boat skipper whose trawler collided with two Japanese Coast Guard ships near uninhabited islands in the East China Sea that both China and Japan claims. The prisoner was released and China lifted its ban on exports a few days later.

What can we do to protect ourselves against Chinas power play?

Rare earth metals are actualy NOT rare.

They are all over the world.

When they define it as RARE they actually mean "unfeasable" to mine it profitably.

AMEX:GMO

What can we do to protect ourselves against Chinas power play?

Learn to eat rice noodles out of a bowl using two little sticks, live in poorly constructed houses, have one car per 5,000 people and talk without using several of the most often used consonants . . .

It has 95% of the rare earth metals that are on the market, but it doesn't have a monopoly on them outright. Other places just haven't really taken the time, energy, or found a good market for them. As prices rise due to China doing this, the market may prove to be too profitable to resist for investors in other countries.

reply to post by steveknows


I hate to burst the Gloom and Doom bubble but...

Contrary to the massively regurgitated and often skewed internet Pop-Culture opinion they cannot hold the world hostage. The Chinese have effectively locked up "by contract" most of the active mining operations but they don't have 95% of the worlds "Known untapped/inactive reserve locations" tied up. The US, Germany, Japan and South Korea who are the largest customers and have become reliant on cheap foreign sources for said minerals.

The US's "Known untapped/inactive reserve locations" alone if activated could supply the world. But like everything these days in the US it is considered not "Cost effective"

Rare Earths

Currently, Rare Earth Dependent Technologies are nearly 100% reliant on Chinese-sourced materials. While in recent years China has managed to supply the entire world’s demand for Rare Earths, a dramatic shift is beginning to take place. As global requirements for Rare Earths continue to grow considerably (fueled primarily by the development and deployment of green energy technologies like hybrid vehicles, energy efficient lighting and wind power), China’s own domestic use of its resources is also soaring—with internal consumption presently at about 60% of production and rising rapidly.

The best plan for ensuring the future security of America’s Rare Earth Dependent Technologies is developing a strong domestic Rare Earth industry based on the responsible use of our own strategic reserves.

Fortunately, the U.S. has one of the world’s largest and richest Rare Earth deposits at Molycorp Minerals’ facility in Mountain Pass, California. At Mountain Pass we are producing certain Green Elements and plans are in place to bring the facility back into full production following an extensive modernization and expansion project. With appropriate federal assistance for research, development and capital costs, Molycorp Minerals is prepared to move forward to reestablish domestic manufacturing capacity on an expedited basis.

In a nutshell..

If China tries that crap it will drive the cost up. Which will make other presently "More expensive" inactive mining operation/locations more competitive and cost effective. It's only a temporary issue if push comes to shove.

Have a great day.
PEACE

Slay

Originally posted by AnIntellectualRedneck
It has 95% of the rare earth metals that are on the market, but it doesn't have a monopoly on them outright. Other places just haven't really taken the time, energy, or found a good market for them. As prices rise due to China doing this, the market may prove to be too profitable to resist for investors in other countries.

And all six people in the western world who have enough money to invest in the mining and processing of these rare earth metals will get really friggin' rich(er).

Folks such as you and me, we'll get calluses and breathing disorders digging the stuff outta the ground for them.

Originally posted by AnIntellectualRedneck
It has 95% of the rare earth metals that are on the market, but it doesn't have a monopoly on them outright. Other places just haven't really taken the time, energy, or found a good market for them. As prices rise due to China doing this, the market may prove to be too profitable to resist for investors in other countries.

It cost mega dollars to start off the mining but once its up and running it makes megga bucks

Originally posted by SLAYER69
reply to post by steveknows

 

I hate to burst the Gloom and Doom bubble but...

Contrary to the massively regurgitated and often skewed internet Pop-Culture opinion they cannot hold the world hostage. The Chinese have effectively locked up "by contract" most of the active mining operations but they don't have 95% of the worlds "Known untapped/inactive reserve locations" tied up. The US, Germany, Japan and South Korea who are the largest customers and have become reliant on cheap foreign sources for said minerals.

Here is perhaps a different perspective.

Sorry the link won't post on the box but here it is.

www.mining-technology.com...

I have to back up Slayer69's statement.

I just finished reading an article in Discover Magazine's July/August 2011 edition entitled "Elements of [modern] Style" (pg. 63-67)

"China holds about 36 percent of the world's 110 million tons of the world's recoverable rare-earth ores, with the rest scattered worldwide, principally in the United States, India, Australia, and Russia."
"Separating out the desired elements demands a toxic and dangerous process, and China has the best infrastructure for doing so economically."

We all know the "stringent" (yes... sarcasm!) environmental and work condition regulations in China... which probably explains:

"China currently produces as much as 97 percent of rare-earth oxides..."

It is much different to say that they extract the lanthanides (the new term for rare-earth elements, because, in reality, they are vastly abundant) than it is to say that the lanthanides are found almost exclusively in Chinese quarries.

the Billmeister