rare-earth elements - Hard Assets Rare Earths Investment Summit
rare-earth elements - Hard Assets Rare Earths Investment Summit
rare-earth elements - Hard Assets Rare Earths Investment Summit
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Chinese Policies and Production<br />
NYSE AMEX: REE<br />
TSX: RES<br />
• China wants to create major wind turbine, solar panel, and electric car industries<br />
Chinese Government Policy<br />
• Strategic value of REO well understood<br />
• Export quotas declining annually<br />
• -10% since 2004 to 59,600t in 2007<br />
• -6% to 56,900t in 2008<br />
• -12% to 50,100t in 2009<br />
• -40% to 30,300t in 2010<br />
• -7% ? to ~28,000 in 2011<br />
• Raised export tariffs to 15-25%<br />
• Key interest in maintaining long-term<br />
domestic supply for the Chinese<br />
manufacturing industry<br />
• Pressure high-tech companies that need<br />
these REE to relocate production to China<br />
Source: Metal-Pages<br />
Chinese Production Limits<br />
• Largest REO mine - Bayan Obo (50% of<br />
world supply) probably operating at or<br />
near capacity<br />
• REO is a by-product of iron mining<br />
• Future ore selection forecast to result in<br />
lower REO grades<br />
• Sichuan<br />
• Environmental issues<br />
• Underground mining<br />
• Jiangxi, Guangdong, Hunan, Fujian<br />
• Fragile resource due to over exploitation<br />
• Fragile environment due to mining methods<br />
• Limited reserves<br />
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