 |
|---|
Posted on 06/21/2018 1:45:07 PM PDT by 2ndDivisionVet
It’s not far-fetched to consider ‘The Art of the Deal’ applied to North Korea’s allegedly vast rare earth resources.
This may not be about condos on North Korean beaches after all. Arguably, the heart of the matter in the Trump administration’s embrace of Kim Jong-un has everything to do with one of the largest deposits of rare earth elements (REEs) in the world, located only 150 km northwest of Pyongyang and potentially worth billions of US dollars.
All the implements of 21st century technology-driven everyday life rely on the chemical and physical properties of 17 precious elements on the periodic chart also known as REEs.
Currently, China is believed to control over 95% of global production of rare earth metals, with an estimated 55 million tons in deposits. North Korea for its part holds at least 20 million tons.
Rare earth elements are not the only highly strategic minerals and metals in this power play. The same deposits are sources of tungsten, zirconium, titanium, hafnium, rhenium and molybdenum; all of these are absolutely critical not only for myriad military applications but also for nuclear power.
Rare earth metallurgy also happens to be essential for US, Russian and Chinese weapons systems. The THAAD system needs rare earth elements, and so do Russia’s S-400 and S-500 missile defense systems.
It’s not far-fetched to consider ‘The Art of the Deal’ applied to rare earth elements. If the US does not attempt to make a serious play on the Democratic People’s Republic of Korea’s (DPRK’s) allegedly vast rare earth resources, the winner, once again, maybe Beijing. And Moscow as well – considering the Russia-China strategic partnership, now explicitly recognized on the record.
The whole puzzle may revolve around who offers the best return on investment; not on real estate but sexy metal, with the Pyongyang leadership potentially able to collect an immense fortune.
Is Beijing capable of matching a possible American deal? This may well have been a key topic of discussion during the third meeting in only a few weeks between Kim Jong-un and President Xi Jinping, exactly when the entire geopolitical chessboard hangs in the balance.
So metals are not sexy?
Researcher Marc Sills, in a paper titled ‘Strategic Materials Crises and Great Power Conflicts’, says: “Conflict over strategic minerals is inevitable. The dramas will likely unfold at or near the mines, or along the transportation lines the materials must travel, and especially at world’s strategic chokepoints the US military is now generally tasked to control. Again, the power equation is written to include both control of possession and denial of possession by others.”
This applies, for instance, to the Ukraine puzzle. Russia badly needs Ukraine’s titanium, zirconium and hafnium for its industrial-military complex.
Earlier this year Japanese researchers discovered a deposit of 16 million tons of rare earth elements (less than the North Korean reserves) beneath the seabed in the Western Pacific. But that’s unlikely to change China’s – and potentially the DPRK’s – prominence. The key in the whole rare earth element process is to devise a profitable production chain, as the Chinese have done. And that takes a long time.
Detailed papers such as ‘China’s Rare Earth Elements Industry’, by Cindy Hurst (2010), published by the Institute for the Analysis of Global Security (IAGS) or ‘Rare Earth in Selected US Defense Applications’, by James Hedrick, presented at the 40th Forum on the Geology of Industrial Minerals in 2004, convincingly map all the connections. Sills stresses how minerals and metals, though, seem to attract attention only in mining trade publications: “And that would seem to explain in part why the REE contest in Korea has eluded attention. Metals just ain’t that sexy. But weapons are.”
Metals are certainly sexy for US Secretary of State Mike Pompeo. It’s quite enlightening to remember how Pompeo, then CIA director, told a Senate Committee in May 2017 how foreign control of rare earth elements was “a very real concern.”
Fast forward to one year later, when Pompeo, taking over at the State Department, emphasized a new “swagger” in US foreign policy.
And fast forward again to only a few weeks ago, with Pompeo’s swagger applied to meetings with Kim Jong-un.
Way apart from a Netflix-style plot twist, a quite possible narrative is Pompeo impressing on Kim the beauty of a sweet, US-brokered rare earth elements deal. But China and Russia must be locked out. Or else. It’s not hard to visualize Xi understanding the implications.
The DPRK – this unique mix of Turkmenistan and post-USSR Romania – may be on the cusp of being integrated to a vast supply chain via an Iron Silk Road, with the Russia-China strategic partnership simultaneously investing in railways, pipelines and ports in parallel to North-South Korean special economic zones (SEZs), Chinese-style, coming to fruition.
As Gazprom’s Deputy CEO Vitaly Markelov has revealed: “The South Korean side has asked Gazprom” to re-start a key project – a gas pipeline across North Korea, an umbilical cord between South Korea and the Eurasian landmass.
Since key discussions at the Far East Summit in Vladivostok in September 2017, the roadmap is set for South Korea, China and Russia to attach the DPRK to Eurasia integration, developing its agriculture, hydropower and – crucially – mineral wealth.
As much as the Trump administration may be late in the game, it’s unthinkable Washington would abandon a piece of the (metal) action.
Their billion dollar poppy crop is much easier to deal with than having foreigners in there w/ equipment tearing-up everything for REEs.
Whether this is true or not, I don’t know. But I know there is a difference between President Trump and the career politicians we’ve had to live with up until now. When most politicians look at such a scenario, they start calculating based on how they can line their own pockets, how they can keep power or gain more of it, and how they can punish their political opponents. And last but not least they think of how they can make it sound like their efforts have something related to an American interest at heart. Almost none actually seem to care about the impact on us, and a large percentage seem to want to be sure any impact on us is detrimental rather than beneficial.
Thank God for President Trump.
| |
|---|
This seemed like the right spot to drop this in
Rare Earth - Get Ready!
https://www.youtube.com/watch?v=IyAwY2Q96Ps
China will be some sort of partners in any deal. The other side has to get something out of it. USA has some big issues with China and has incentive to shut China off from the American Market which is what the tariffs on Canadian metal are all about. That metal is transshipped from China. China’s takeover of the major nexus of sea trade in the South China Sea is a very big deal. My thought would be that we should designate a Fleet for that zone and and put its Asian side home port at Cam Ranh but Trump will probably fix things withoug something that close to a war.
iirc we have plenty here in the USA but it was deemed off limits or the rights were sold either by zero or the clintoons
Elk Creek NE, Niobium, Scandium, Titanium.
dint zero or clintoon lock up some farther west?
There was a deposit of rare earths in, I think, Mountain Pass CA that was mined by Molycorp. Something to do with NP stopped it I think. I think that the Chinese...of course...have the operation now. (of course....)
https://www.marketplace.org/2017/06/26/business/big-book/why-us-buys-all-its-rare-earth-metals-china
Standard oil and Rockerfeller..
(Snip!)
“However, the real problem is that more and more mineral imports are coming from China, Russia, and third-world dictatorships. The nation’s vulnerability to a mineral embargo has become sufficiently serious that President Trump issued an Executive Order (EO) on December 20, 2017, to ensure secure and reliable supplies of critical minerals for the nation.
For the first time, a presidential EO puts forth an official government definition of what a “critical mineral” is, along with its role in the economy: “a non-fuel mineral material essential to the economic and national security of the U.S.; the supply chain of which is vulnerable to disruption; and that serves an essential function in the manufacturing of a product, the absence of which would have significant consequences for our economy or our national security.”
This new definition enables federal agencies and others to focus on how serious the issue of critical mineral imports has become from an economic, geological, technological, and manufacturing standpoint.
In response to the president’s EO, the U.S. Geological Survey (USGS) last week published a list of 35 “critical minerals” that are important for American economic health and military readiness. The draft list includes aluminum, platinum, rare-earth elements, tin, titanium, and over two dozen other critical minerals and metals. These are the minerals that will be required to sustain our standard of living and begin rebuilding the American infrastructure, as proposed by the president.”
good stuff
Or any other place you can name.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.