AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
Surging prices of rare earth elements, coupled with slashed export quotas from China, are creating ripples in the rare earths industry, including a call for the US government to start stockpiling the materials.
Vancouver-based Quantum Rare Earth Developments Corp. (TSX-V:QRE; OTCQX:QREDF; FRANKFURT:BR3) issued a news release Friday calling on the U.S. to start stockpiling rare earths— voicing support for recent US legislation that directs the Department of Defense to set up an inventory of rare earth oxides, metals, alloys, and magnets for defense purposes:
“The recent action by the U.S. House committee is an important step to break the dependence on foreign sources of rare earth oxides, metals, alloys and magnets, which are vital to strategic industries including defense,” said Quantum President and CEO Peter Dickie.
Dickie noted that with end users relying on Chinese black market REE supply, prices are climbing further and putting more pressure on supply: “It’s brought to the limelight the need to bring on stream as quickly as possibly other supply chains, ” he told BIV Friday.
Meanwhile, the Wall Street Journal is reporting on the growing trend for shorting rare earth stocks, as share prices have dropped recently amid the supply crunch brought about by Chinese export restrictions.
“Short interest in the three quoted rare-earth miners outside of China (Molycorp Inc., Avalon Rare Metals Inc. and Rare Element Resources Ltd.) has continued to build since April and stands just off record highs,” said Will Duff Gordon, research director for Data Explorers. Despite a recent share-price correction in the three stocks, “it seems that short sellers still believe them to be overvalued.”
MINING.com reported on June 21:
China’s exports of rare earth ores, metals and compounds, fell 8.8% to 23,742 metric tons in the first five months of the year compared to last year, customs data supplied by Hong Kong-based Economic Information & Agency showed Tuesday.
China in recent months closed or consolidated more than 35 rare earth mines and cut export quotas sparking concerns in the US and other industrial nations about access to supplies and causing a frenzy of exploration and development activity.
