Chen Zhanheng opined in 2011 that China has abundant rare earth resources, but rare earth deposits are really not that rare in the earth crust. In the five continents, i.e. Asia, Europe, Australia, North and South America, and Africa, there are about 34 countries found to have rare earth deposits; Brazil might surpass China and rank the first in rare earth deposits. At present, investment in rare earth production has surged, there have been about 200 projects, and the total production for 25 of them would be more than 170 thousand tons after 2015, a multi-supply system on rare earths is being established worldwide. Cautions on the investment of rare-earth production are involved.
The author concludes that the future for rare earth industry is very promising. It is time to invest rare earth production. But there are still some important cautions:
1) Regarding not all the deposits are economic to mine, a strict geological research should be performed at first. If your rare earth deposit is rich in heavy rare earth elements, then good luck! You will make more money and have little investment risk, because the production of light rare earth is about 75% of the total production,
2) The products could be rare earth concentrate and compounds like oxides, metals and alloys; it depends on your target consumer and the rare earth contents in the deposits. To produce only rare earth concentrate is not that profitable, but easy to control, and
3) Environment concerns must be paid; almost all the deposits contain the radioactive element thorium. Environmental cost is related to your market competitive
force.
It is very important that current rare earth market with profitable prices is greatly stimulated by the strict quota control of China and curb of smuggling to limit the supply. Therefore, so all producers should pay great attention on the adjustment of future quota amount, but the government of China will have the far-sight to encourage the establishment of diversified supply of rare earths and will control the quota within a reasonable range so as to keep present market price level.
[For an update of REE resources and the industry have developed since 2011, see (here).]
Managed & Built by I2M Consulting, LLC | © 2010-
