WTO Upholds ‘Rare Earth’ Ruling Against China

Associated Press ^ | Aug. 8, 2014 12:50 AM EDT

[Olog-hai]

They own 95 percent of the world’s mined supply, but only 33 percent of the planet’s resources. Go figure.

[Cincinatus]

All minerals are made up of elements, arranged in a crystal-lattice structure. The only non-crystalline natural materials are liquids (including glass, a liquid of very high viscosity) and gases. So it’s not simply the rare earths that occur in minerals — all elements do, including the most common (rock-forming) elements (e.g., Al, Fe, Ca, Si).

[JimSEA]

For a long time, the Mountain Pass, mine in CA near the NV border, was the major world producer of rare earths. Exploration within the USA is at fever pitch with several likely prospects. Our problems lie with the government, not the private sector. EPA, etc. Is just not going to permit mine development. Period.

[Ben Ficklin]

Molycorp's problem and the problem in general is the roller coaster price of rare earths.

From the 90s into the oughties, prices were depressed. China went big, cut a lot of corners, and cornered the mkt in time for the run up on prices. Now, prices are depressed again. No one wants to make large capital investments on depressed prices, especially if there is a chance that China could cut prices.

Molycorp has just recently been bailed out with a $400 million loan.

A lot of people are confused about Molycorp and EPA because they get their news from World Nut Daily, and such.

Moly started in '52 with a 50 yr permit. The mine and processing facilities were on land they owned. Their evaporation ponds were located on other land they owned but were away from the mine. The pipeline connecting the two properties crossed BLM land.

In 1992 they determined that there was more ore to be mined so they entered into a land swap with BLM to acquire the additional land needed to expand the mine. They would seek a 30 year permit beyond the 2002 end of the original permit.

Initially, EPA deferred to the county planning commission as the lead agency and as such only a EIR would be required. EPA didn't see the pipeline as a problem.

Then Molycorp had the pipeline break problem and EPA got involved, saying that they would be the lead agency and Molycorp would need an EIS.

Molycorp got around it by moving the evaporation ponds onto the main property and recycling water so there would be no pipelines crossing BLM land. Its all on private property and the county planning commission became the lead agency and all they needed was an EIR.

So they got their permit in 2004 rather than 2002 but some of that is attributable to other than environmental. There were delays because mine ownership changed twice plus Molycorp was probably delaying some on their own because prices were depressed.

In the end, Molycorp wanted to vertically integrate. They wanted to be in the mining to magnets business. And the windmill turbine business.

Molycorp website

Molycorp History

[JimSEA]

My only direct experience with Molycorp was at their Tonopah mine back in the 80s when they shut down the operation due to metal prices as I understood things. My slap at the EPA and others is due to the increasing difficulty of permitting a property. They seem to lead a company on and eventually deny the permit after a lot of money has been spent. I know of two viable ore bodies who have been blocked. They both involved the reopening of old properties.

[yefragetuwrabrumuy]

Such bureaucrats would much prefer if the WTO leaned on China to keep China exporting.

[Olog-hai]

Glass is definitely no liquid; it is an amorphous solid. Glass at ambient temperature does not take the shape of its container, does not seek its own level (i.e. does not flow) and exists in a crystalline form in nature (the silicon dioxide, i.e. quartz, in sand).

There are very few elements in their native form in nature due to their reactivity. That includes the base metals (iron, of course, as hematite aka ferric oxide [Fe₂O₃] and other compounds), but especially most alkali metals (the last thing we need is sodium and chlorine in their native forms all the time instead of salt). Precious metals do exist in native form due to their unreactivity (most famously gold).