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.
Prices of the certain rare earths used in energy saving lightbulbs, lasers, nuclear reactors, magnets for hybrid cars and plasma televisions more than doubled in the past two weeks as China, responsible for upwards of 95% of world supply, further tightens control of mining, trading and exports, research house Industrial Minerals said over the weekend.
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. Rare earths are also used in weapon systems such as guided missiles and stealth aircraft, electric vehicles and optical instruments.
The cost of dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about $1,470 a kg from $700 to $740 at the start of the month. Europium oxide used for its phosphorescent properties found in plasma TVs and energy saving light bulbs, has risen to as much as $3,400 a kg from between $1,260 and $1,300, Industrial Minerals said.
“There might be an element of speculation but I think the price rises have been driven by people who are desperate for the product.” The world’s most populous nation will raise standards for exporters and won’t approve new project expansions in an effort to curb overcapacity, illegal mining and sales, the government said last month.
On Tuesday MINING.com reported on Rare Element Resources’s share price jump after the explorer increased deposit estimates by a full 20%:
Rare Element Resources stock jumped 9% in after hours trade in New York after the company announced a new estimate for the amount of rare earth materials at its Bear Lodge project in Wyoming. The gains were on top of a 7% jump during regular hours for the volatile stock which is still trading down almost 40% from record highs hit in January.
The Inner Mongolia autonomous region, the site of 97% of China’s reserves, has drafted a plan to concentrate all resources under Baotou Steel Rare Earth (Group) Hi Tech Co.
The move follows the announcement last week that the state-owned firm will set up the country’s first rare earth products exchange to further regulate the market.
In May MINING.com discussed the prospects for REE stocks saying that while the REE market has come down to earth, no-one is rushing for exits:
After sitting idly by and watching China monopolize the industry a rush to bring rare earth mines to production is on: There are now 251 rare earth projects being undertaken by 165 different companies in 24 countries.
Rare earth production is an expensive and complex undertaking. Very few projects can be developed for under $1bn and as the rest of the world shuttered rare earth mines metallurgical skills languished along with it. Small and mid-size projects in remote locations may find financing difficult and speed to market in the REE world is critical for success.
Comments
Shirley Freeman
Some have said that the two major dangers to us at present are China’s ambitions and the possibility that al Queda may seize Pakistan’s nuclear weapons. Yesterday there was a prediction that the next ‘Pearl Harbor’ will be a cyber attack. However, your article demonstrates that China has many avenues of attack…Our President is not a pragmatist. He is a rigid ideologue. He cannot even see anything not represented in his ideology. With the best of intentions, he cannot see any real benefit in mining and drilling our natural resources. He definitely cannot see the very real danger to America of NOT mining and drilling our natural resources.
Americans want and need to get back to work. We need a Head of State who knows how to get that done. In the meantime, we need a very strong, courageous educational drive so that Americans who do not understand that to create enough jobs for our unemployed and our growing population, we need to have mining, energy and manufacturing jobs as well as people working in nice, clean clothes in air-conditioned offices.
Nobody wants banruptcy; but Americans need to face the reality that poverty and bankruptcy lie ahead for decades to come unless we get enough jobs to make our economy thrive. We need common sense safety regulations for people and the environment. Beyond those regs, we need to encourage expansion and jobs creation with all our strength! Token responses will get token results. There were 11 rigs in the Gulf before the BP oil spill. There is only 1 left, according to Gov. Jindal.
If this President and his ‘RegulationNation’ agencies have their way, only a pitiful ten percent or so of our once rugged economy will be left for future generations to try to find work and livelihood in….That won’t be nearly enough.
We must be on the alert to save our self-reliance, individual initiative, liberty to start new businesses, and our precious bill of rights. We live in a world where our enemies are emboldened, perceiving our leadership by men of theory, weak on action. We have to keep pushing the Obama Admin. for greater use of our vast natural resources, and jobs creation. There is a reward for our work if we don’t grow weary.