A mining industry consultant says the high processing costs and level of expertise required in bringing rare earth mines into production means most of them will fail.
In an interview with Reuters, Jack Lifton, founder of Technology Metals Research, said of the 244 companies hoping to extract REEs, less than 4% will be profitable:
“The choke point for all the companies is the question of what they can do with the concentrated REM ore once it’s above ground. You can extract the rare earths together, but then you have to separate them…the world’s REM separation capacity is 99 percent Chinese and they have unused capacity,” Lifton said.
“The Chinese overwhelmingly control this and that is the key to the rare earth industry. Without separation capacity, all you have is a loss-making ore concentrate company.”
October 31, 2011
After correcting from above $1900 to below $1550, gold prices have undergone the necessary consolidation and now look poised to challenge the old highs.
October 31, 2011
Today I’m speaking with Jim McDonald and Ken Berry of Kootenay Gold Inc.
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October 31, 2011
The Silk Routes, collectively known as the “Silk Road”, refer to a 7000 mile network of interlinking trade routes that were used for three millennia.
October 31, 2011
Euphoria hit the financial markets as the news was announced of a one trillion euro bailout package. The large European banks jumped by as much as 20% in a single day increasing their market caps by billions. This burst of excitement followed through to the United States where the DOW leaped forward as the banking sector lead the way to higher ground.
October 31, 2011
The price of gold pushed through and held above the key resistance level of $1700 an ounce last week, as the US dollar dropped sharply due to the euphoria from Europe about the agreement made at the Euro Summit in Brussels.
October 31, 2011
Investments in the Democratic Republic of the Congo often get dinged with an “exotic locale” discount, but the jurisdiction is much less risky than even a few years ago.
October 28, 2011
Keystone XL should bring Canadian crude, which at the moment sells at a $30 discount, in line with global prices. At the same time a huge slice of the record profits announced this week by Chevron, ConocoPhillips and Exxon Mobil will we wiped out. Here’s why.
October 28, 2011
Are you wondering whether to take your mining company public and, if so, how to do it?
October 28, 2011
After numerous jukes and headline rumors, the world finally received a so-called EU solution. After threatening with a total insolvency Greece situation, European leaders were able to talk bondholders into accepting a 50% haircut on Greek debt.
October 27, 2011
When Agnico-Eagle was forced to shut down production at its Goldex mine in Quebec last month due to unstable ground conditions, many in the industry considered it a death-sentence for the mine.
October 27, 2011
After a more than 3% jump in the first half hour following stellar financial results, investors quickly tempered their optimism about the world’s largest potash miner and by midday Potash Corp was back in the red. You don’t have to look too hard to find reasons for the scepticism.
October 27, 2011
By Jeff Clark The following conversation took place between a friend’s son and me; he’s a bright but relatively young investor. He had purchased some gold based on some things I’d told his father. Shortly afterward, the price dropped hard. …
October 27, 2011
It is the question on every gold investor’s mind right now: Was the recent surge in the gold market a parabolic end to a bubble, or just a severe correction in an ongoing bull market?
October 26, 2011
The US state department’s anonymous leak to the media on Tuesday lowering expectations about a decision on Keystone this year should not come as a surprise to anyone following Barack Obama’s poll numbers or the increasing bitterness on the left about his perceived closeness to industry.
October 26, 2011
Graphite and vanadium may be relatively obscure materials, but these commodities could get a jolt from developing battery technology.
October 26, 2011
The end of 2011 is a golden opportunity to participate in an anticipated upside for mining equities, says Tocqueville Asset Management Senior Managing Director John Hathaway.
November 1, 2011
August 30, 2011
August 25, 2011