Tuesday, November 2, 2010

Scoping The Rare Earth Issue

Chinese dominance of rare earth metal production,and its alleged hoarding of the materials,has drawn the attention of governments and businesses worldwide.There are 17 of the metallic chemicals,which are essential to the manufacture of sophisticated national security and consumer products,such as precision weapons and important information and automotive technology.
Matt Gerthner,senior China analyst at Stratfor,says what is really scaring people is these shortages in the short term.It takes several years to ramp up production of the strategic substances.In the long term,these concerns may start to peter out,since rare earth is found in other places besides China.
Japan has been concerned about access to the metals because it has a territorial dispute with China,but China's monopoly is not forever,Mr.Gerthner believes.
For instance,Japan has recently entered into an agreement with Vietnam to discover and produce the elements.
China has had problems reigning in illegal rare earth mining,which often leaves an enormous black footprint of environmental degradation.In North America,a Vancouver,B.C. firm,Rare Element Resources,Ltd.,is seeking to develop a rare earth mine in Wyoming.
Rare Element Resources,Ltd.(REE)

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