China Freaks Out The World - Restrictions On Export Of Metals Crucial For National Defense

The Business Insider ^ | 6-2-2010 | Joe Weisenthal

[blam]

China Freaks Out The World By Announcing Restrictions On Export Of Metals Crucial For National Defense

Joe Weisenthal
Jun. 2, 2010, 10:11 PM

China appears to be making moves that several folks had been fearing for some time: It is considering stricter limits on the export of so-called rare-earth metals.

The metals, which are most abundant in China, are used in a range of high tech industries including green energy and defense, which is what most concerns the US government.

Claiming that the mining of rare earths has been bad for the environment, the government is moving to restrict unauthorized wells, which may be exporting their goods illegally at too-low prices, according to NYT.

This move will surely be good news for the one major domestic player, Molycorp, which is based in California, and has IPO plans. Any restrictions coming out of China can only mean an easier time with regulations, and more subsidies, especially given the defense implications.

We've put together a presentation on what you need to know about rare earths. The first part is a presentation from Avalon Rare Metals, explaining what they're all about, and the second lists key countries to pay attention to

[snip]

[Uncle Ike]

Ominous ping....

[Matchett-PI]

bttt

[al baby]

looks like getting out of the market was a good idea

[b4its2late]

I'm sure they'll manufacture our weapons for us. /s

But on a serious note, wait till they take over the American Companies there and seize all their assets. It's gonna happen and there isn't a thing O will do about it except apologize. And they wonder why Red China wouldn't meet with them?

[James C. Bennett]

This is a serious issue, and needs careful attention. I’m not sure of the current American sources for Neodymium (Nd), but they are limited, and the prospects are poor. Neodymium is crucial for high-efficiency motors and other electro-magnetic and electro-mechanical components that find themselves in such things as aircraft, military machinery, rockets and submarines.

[null and void]

Back to work widchew

[pissant]

Our friends the chicoms. Obama, how about another groveling bow. Seems to be working so well.

[TheZMan]

That we haven’t secured significant supplies or reliable sources for these materials, or created substitutes by now speaks volumes.

[Irenic]

*

[Frantzie]

Thank American idiots who pay $50 to 120 a month to cable and sat TV companies to become serfs. The 5 TV networks control 95% of all the TV channels and they all support Obama and so does the NCAA, NFL, MLB and NBA.

At least the Europeans do not elect Muslims to run their countries.

[tophat9000]

Molycorp has (or had) mines in the Talo New Mexico area.. could be good business coming in that area

[JRandomFreeper]

There are many sources for rare earths, including (yay!) Texas. The problem is the concentrations. Some of the concentrations in China run up to 65% yttrium oxide, which is why they have the illegal mines.

I expect the prices will go up on lots of things to cover this, but human ingenuity will find a way around it.

/johnny

[James C. Bennett]

I had earlier read that the prospects for Neodymium are particularly poor.

[oyez]

..high tech industries including green energy and defense, which is what most concerns the US government. The U.S. Government has some queer ideas about green energy and thinks we have more than enough defense.

China will go ahead and us and use the rare earth element technology to their own benefit and advantage..

[JRandomFreeper]

Neodymium is about 38 ppm in the earth's crust, overall. More than lithium or tin, actually. The concentrations are the big problem. But someone will figure it out.

Right now, the highest concentrations are probably in landfills.

/johnny

[James C. Bennett]

I guess so, too.

[Pox]

China has been producing the bulk of these so called rare earth elements for about a decade now. Their supply of relatively easy to obtain ree’s aren't going to last forever, and they've finally realized that as their supply is exported all over the world, their profits are nowhere near what they could be. You only need to look at oil prices to see why they are doing this, IMO.

Australia, Canada and the U.S. have significant deposits that can meet the demand once prices rise some and availability starts to wane, and of course once environmentalists are corralled.

China is actually doing us a favor by pushing us to mine our own resources instead of depending on theirs. Better to be spurred to actually mine our own deposits now and have that source available over the long run versus having no access at all if China decides to simply cut off the rest of the world from their supplies.

[oyez]

I had earlier read that the prospects for Neodymium are particularly poor.

The Federal Government is requiring the of use the screwy mercury vapor containing bulbs that doesn't use the neodymium glass. So therefore China will be shipping more and more mercury to us.

The neodymium would be tied up in the glass forever. The new bulb will eventually break and the mercury liberated.

What a country.

[43north]

The western states have large deposits of many of these rare Earth elements. The problem is all of the NIMBY types which include the US gubbmint.