Commodity Online
Rare Earth Metals or REM are not so extinct, yet are extremely precious. China is the world’s main producer of REM’s, followed by Russia, India and Brazil. There are not only few producers of REM outside China, but there are even fewer such REM operations that are publicly quoted.
There are fewer listed companies engaged in mining of REM. But these fewer companies are enjoying benefits that the heavy metal or base metal sectors are not.
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Alkane Resources Ltd (ASX: ALK) gained 2.17% while Arafura Resources Ltd. (ASX: ARU) had an impressive 13.02% gain.
Both companies are on the verge of further expansion. Alkane, whose Dubbo Zirconia project laboratory scale testing for recovery of the rare earth elements is scheduled to commence in July whereas Arafura expects the rare earths processing plant at its Nolans Project in the country's Northern Territory to be in production in 2011.
Alkane Resources Ltd. is also engaged in mining and exploration for gold, and other minerals and metals.
Among others, Avalon Rare Metals (TSE:AVL) gained 5.45%, propelled by its announcement of succeeding in extending the high grade Basal Zone REE mineralization by over 100 metres into previously untested areas to the south in Yellowknife, Toronto, Canada.
Great Western Minerals Group (CVE: GWG) gained 7.14%, Lynas Corporation Limited (ASX: LYC) noted a gain of 2.22%, and finally VMS Ventures Inc. (CVE: VMS) was traded at C$0.28, on Wednesday.
REM’s are most prominently used in defense industry, the most precious are cerium, lanthanum, neodymium and yttrium, which are in fact more widespread in the Earth's shell than lead. The REM’s are now important economically, environmentally and technologically.
REM deposits in China and the U.S. are principally to be found in the mineral bastnäsite (80-90% of all raw materials produced), while in Australia, Brazil, India, Malaysia, South Africa, Sri Lanka and Thailand - they are typically to be found in the mineral monazite.
Globally, U.S. remains a major importer, exporter and consumer of REM. From 2003-2006, China accounted for some 94% of its REM-related imports. The prices of most REM rose in 2007, and with the exclusion of neodymium and praseodymium (both metal and oxides) and terbium (oxide), the prices of nearly all REM (metals and oxides) have either remained the identical, or continued to rise in 2008.
Wherein, Cerium was at US$3.6/kg in 2007 and increased to US$10.5/kg, while significant price increase is witnessed in Yttrium, which was at US$12/kg in 2007 and increased to US$42/kg by the end of 2008.
Also Europium that was at US$368/kg in the end of 2007 and increased to US$700/kg by the end of 2008.
With inputs from www.hardassetsinvestor.com
