September 2009: A recent issue of The Observer included an article in association with The New York
Times in the Money & Business section that drew my attention. The headline
read "China Tightens Grip on Rare Minerals".
It turned out to be an article on Rare Earth Element (REE) production by
China. These elements take up a special position in the Periodic Table - as
do the actinides - and alternatively are called lanthanides (although it
depends on how you define them).
China supplies over 99% of the world's Dy and Tb, says the article, and 95%
of the world's Nd. One mine in Baotou in Inner Mongolia produces half the
world's REEs.
Apparently, two mining companies - Lynas Corporation and Arafura Resources -
were about to open two Australian mines and change all that, but are likely
to end up at least partly in Chinese hands because they lost their
financing.
Avalon Rare Metals is now trying to open a mine in Canada and Molycorp
Minerals wants to reopen one in California, according to the article, and it
sounds like their shares recently did pretty well.
Intriguing aspect is that some of the REEs used in green technologies,
including lightweight magnets in wind turbines, originate from
high-pollution, low-cost mining in China. Did you know that the electric
motor of a Toyota Prius contains 1 to 2 kilograms of Nd?
If you want more details, also about the mining technology involved, please
see the original article on
China's increasing control of rare earth element production,
which was written by Keith Bradsher and published on page B1 in the NY edition of the New York Times on September 1.
That version is better than what was on page 5 of the NYT section in The
Observer (which looks like it was edited by someone who does not know what
REEs are).
