China's Rare Earth Monopoly: The End Is Coming
By David Fessler
The huge global wall of worry over Chinas dominance of the rare earth market is certainly warranted if youre the CEO of one of the thousands of companies around the world that depend on such material.
Rare earths are those magical 17 elements that are used in thousands of everyday products, including certain cutting edge ones. Camera lenses, lasers, high-power magnets for wind turbines and electric vehicles, and even steel all contain one or more of them.
Last year, the worlds rare earth market was worth about $2 billion. Between Chinas export quotas and increasing demand which is forecasted at about 180,000 tons next year the rare earth market could approach $9 billion by 2012.
The problem is that China currently controls 97% of the worlds rare earths, producing about 120,000 tons per year.
But last year, it reduced its export quotas. And this past December, it did it again.
Given the numbers mentioned above, rare earth mining companies all over the world are seeing increasing opportunities.
Brazil Is Looking to Pounce on Rare Earth Opportunity
U.S.-based Molycorp, Inc. (MCP) perhaps the most followed of rare earth miners owns the most developed mining project outside China. Its currently in the process of restarting a mine that was shutdown for years.
Meanwhile, other countries with deposits of crucial elements are also trying to capitalize on Chinas plans to shut down its exports of these rare earths.
One of them is Brazil
Complete Story
Comments