A Rare Earth Bonanza
As much as 95% of the world's rare earth elements are produced in China. And it is becoming increasingly urgent for developers to find REEs in other parts of the world.
This becomes more and more apparent every time I talk to high-performance battery manufacturers and companies that rely on rare earth magnets for things like wind turbines and energy efficient electric motors.
Bottom line: China needs those REE supplies for its own consumption.
And in the not-too-distant future, those supplies found outside the Middle Kingdom will be the only supplies we'll be able to get our hands on.
So here are a few companies that are operating in this sector that are not based in China:
Avalon Rare Metals, Inc. (TSX: AVL) – projects in Canada
Great Western Minerals Group (TSX-V: GWG) – projects in Canada, South Africa, and the United States
Hudson Resources, Inc. (TSX-V: HUD) – projects in Greenland
Rare Earth Metals (TSX- V:RA) – projects in Canada
Commerce Resources Corp. (TSX- V:CCE) – projects in Canada
And of course, there's Molycorp (NYSE: MCP), which is the only major U.S. public producer of rare earths. This company is ramping up operations in Mountain Pass, California, just about 15 miles from the Nevada border. Molycorp recently started extracting ore and expects to average 40,000 metric tons per year of rare earth oxide ore from the Mountain Pass mine.
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China sometimes reminds me of a schoolyard bully that no one has the stones to confront.
He'll take your lunch money, make you do his homework, and run your pants up a flag pole during a particularly cold and rainy day...
Or in this case, hoard the world's supply of rare earth metals.
The global investment and manufacturing community's disdain for Chinese manipulation of rare earth markets has led the World Trade Organization (WTO) to rule against China's stockpiling. If China doesn't abide by the ruling, it can be sanctioned.
Of course, by the time they get around to doing that (which could take years), all those WTO hearings and sanction threats won't even matter anymore...
Because by then, true seekers of wealth will have already turned the tables on China's rare earth bullying — and made billions as a result.
As you may know, rare earths are found in everything from magnets and smartphones to radar equipment and hybrid vehicles. But don't think for a second that manufacturers of all these products are waiting around for some kind of WTO ruling to save their businesses from ruin...
The fact is any company that relies on rare earths today is either actively developing new technologies that rely less and less on rare earths — or they're simply getting in on a wave of new non-Chinese rare earth producers.
Take Toyota (NYSE: TM), for instance: The automaker has invested in non-Chinese rare earth producers as a hedge, including a Vietnamese mining company that signed off on one such deal just a few months ago. And Toyota recently announced it has developed a way to make hybrid and electric vehicles without rare earths...
The new technology could start appearing in the market within two years.
(Must be valid, will be verified)
October 27th, 2013
The rare earth story has been gripping the market for years now.
Just three years ago, no one even knew what rare earth elements (REEs) were...
Then, almost overnight, they were in high demand for smart electronics and high-tech energy solutions.
And it turns out, China has a 95% monopoly on rare earth supply — and was employing shady practices to manipulate the market. In the wake of China's tactics, prices for rare earth metals climbed as high as 3,000%.
But the saga isn't over yet...
Yes, MCP management threw Wall Street all of the money and perks it could and still be legal.
If they aren't satisfied now, they will never be. Just get those leeches off.
ty cb and lmfao at the shorts... what kind of people just sit around to "thumbs down" every post?
it would put the price of common at $9+
Anyone else but me who wants to know what's going on here?
As a long, I will be watching for these. From the website:
Molycorp conducts its R&D internally at research centers located at its flagship facility at Mountain Pass, California; Tolleson, Arizona; Abingdon, UK; Singapore and at the JAMR and ZAMR production facilities. Customer collaborative research is a main vehicle used to achieve customer product requirements in an efficient, timely and cost effective manner. The division also collaborates with selected research and educational institutions in basic R&D.
A number of products currently exist in various stages of development in the Molycorp R&D pipeline. New products are introduced to the market on a continuous basis. The company’s internal target is to derive at least one quarter of its separations and processing revenues from products that either did not exist or Molycorp did not produce three years prior. It is typically these products that contribute the highest margins.
Does Motley Fool use a Template that Phrases Everything as a Question?
analyst Brian Lee said in a client note that the Univar deal seems to position Molycorp to********* sell out almost its entire Phase I cerium production by 2015
Cerium oxide - white gold!
While gold’s worth has doubled recently, the value of cerium oxide polishing has increased almost
7 times. The availability of cerium oxide, a „rare earth element“ - has decreased drastically because
of the Chinese resource policy.
For many years, China delivered this material at the best price to the world market. Therefore, other
ore resources in the world were no longer mined and were closed. Due to the lack of profitability,
no other country than China was interested in investing money in ore mining. Consequently, China
was the only exporter and recently fulfilled over 95% of the world’s consumption with cerium oxide.
In the meantime, China reduced its export volumes and has been increasing export prices for about
How can you minimize your cerium oxide usage?
Avoid overdose polishing agent
Improve the process before polishing to shorten polishing process times and to
economize polishing agent
Replacing cerium oxide in all processes where it is not absolutely necessary
(e.g. cleaning of glasses from contamination caused by other materials and processes)
Replacing especially pure cerium oxides by others containing a lower
concentration does not necessarily lead to an economization at the end of the process
To prevent another price increase, it is better to order material as early as possible. Our selling pri
ces are based on the prices of our suppliers. Those, however, reserve their right to adapt the price
rates until the date of delivery.
Accordingly, we cannot give long term price statements. Prices based on price lists are no longer
The price of clear cerium oxide (not yet a finished polishing agent) has
increased about 100 Euro / kg since June 2010.
Manufacturers of the polishing agent are trying to act strategically against
the monopolistic dependency from China.
Researchers in Argonne’s Chemical Engineering Division have developed a catalyst that could help diesel truck manufacturers eliminate harmful nitrogen-oxide (NOx) emissions from diesel exhausts. The beaker of blue catalyst material is ‘Cu-ZSM-5′, a zeolite with copper ions attached within its micropore structure and an external coating of cerium oxide.
to get the cockroaches and vampires of Wall Street out of the picture?
If we don't do it, someone else will.
Sentiment: Strong Buy
Organocerium compounds are chemical compounds that contain one or more chemical bond between carbon and cerium. Organocerium chemistry is the corresponding science exploring properties, structure and reactivity of these compounds. In general, organocerium compounds are not isolable, and are rather studied in solution via their reactions with other species. There are notable exceptions, such as the Cp*3Ce(III) complex shown at right, but they are relatively rare. Complexes involving cerium of various oxidation states are known: though lanthanides are most stable in the +3 state, complexes of cerium(IV) have been reported. These latter compounds have found less widespread use due to their oxidizing nature, and the majority of literature regarding organometallic cerium complexes involves the +3 oxidation state. In particular, organocerium compounds have been developed extensively as non-basic carbon nucleophiles in organic synthesis. Because cerium is relatively non-toxic, they serve as an "environmentally friendly" alternative to other organometallic reagents. Several reviews detailing these applications have been published.
A major technological application for cerium(III) oxide is a catalytic converter for the oxidation of CO emissions in the exhaust gases from motor vehicles. In particular, cerium oxide is added into diesel fuels. Another important use of the cerium oxide is a hydrocarbon catalyst in self cleaning ovens, incorporated into oven walls and as a petroleum cracking catalyst in petroleum refining.
Cerium(IV) oxide is considered one of the most efficient agents for precision polishing of optical components. Cerium compounds are also used in the manufacture of glass, both as a component and as a decolorizer. For example, cerium(IV) oxide in combination with titanium(IV) oxide gives a golden yellow color to glass; it also allows for selective absorption of ultraviolet light in glass. Cerium oxide has a high refractive index and is added to enamel to make it more opaque.
Cerium(IV) oxide is used in incandescent gas mantles, such as the Welsbach mantle, where it was combined with thorium, lanthanum, magnesium or yttrium oxides. Doped with other rare earth oxides, it has been investigated as a solid electrolyte in intermediate temperature solid oxide fuel cells: The cerium(IV) oxide-cerium(III) oxide cycle or CeO2/Ce2O3 cycle is a two step thermochemical process based on cerium(IV) oxide and cerium(III) oxide for hydrogen production.
The photostability of pigments can be enhanced by addition of cerium. It provides pigments with light fastness and prevents clear polymers from darkening in sunlight. Television glass plates are subject to electron bombardment, which tends to darken them by creation of F-center color centers. This effect is suppressed by addition of cerium oxide. Cerium is also an essential component of phosphors used in TV screens and fluorescent lamps. Cerium sulfide forms a red pigment that stays stable up to 350 °C. The pigment is a nontoxic alternative to cadmium sulfide pigments.