The LCM Rare Earths News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the state of the global rare earth elements industry.

1. LCM Rare Earths
News Review
February 2013
The LCM Rare Earths News Review is a monthly
report compiled for London Commodity Markets to
provide a snapshot of the state of the global rare
earths industry.
London Commodity Markets
Citibank Tower, 25 Canada
Square, Canary Wharf,
London E14 5LQ
Tel: 00 44 (0) 203 514 600
Fax: 00 44 203 514 6001
2/22/2013

2. Ucore Rare Metals set for Rare-Earth
Alaska mine completion by 2016
Junior explorer Ucore Rare Metals Inc is
engaged in searching for rare earth
elements deposits in North America.
They have announced previously that
they aim to commence production at its
Bokan mine in Alaska by 2016, according
to local media reports.
According to a report in Metal-Pages,
Ucore which is focused primarily on its
Bokan-Dotson Ridge rare earth element
(REE) property.
If successful in obtaining the necessary
permits, construction of the mine is planned to in 2014, then becoming fully operational in
2016.
Last year in an interview with Rare Earth Investing News Ucore’s CEO Jim McKenzie said of the
Bokan Mountain mine as being, the largest NI 43-101 compliant heavy REE resource on United
States soil; as a result, it has enormous strategic implications for the US, especially given that
heavy REEs are the backbone of some of the technologies that are most important to the
country’s economic future (for instance,
transportation, clean energy, defence systems and
medical science).
He added that the project could help challenge
China’s domination of the market.
The Bokan property is particularly enriched with
heavy rare earth elements, including the critical
elements dysprosium, terbium and yttrium.
Approximately 40% (by weight) of the rare earth
elements contained on the Dotson Ridge property
are heavy rare earth elements, as disclosed in the
Company’s NI43-101 resource estimate technical
report, filed on April 21st, 2011.
The resource was completed by R. J. Robinson, a
consultant from Aurora Geosciences.
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3. Japanese pilot project to begin
extraction of rare earths in Jamaica
Japanese rare earth elements company Nippon Light
Metals (NLM) has started extracting rare earth
elements from its pilot plant in the Jamaica Bauxite
Institute (JBI) in Hope Gardens, St. Andrew.
The US $3 million pilot project will for the next three
months begin extracting rare earth elements from
the red mud which is rich in rare earth elements
deposits. Jamaican officials are confident exports of
rare earth elements have the potential to earn the
country more in export revenues than its current
aluminium exports.
Rare earth elements or lanthanides as they are also known as are critical ingredients in today’s
high tech industries that manufacture products such as smart phones, powerful magnets used
in electric motors to lasers and military hardware.
Many industries such as the electronics sectors, are highly dependent on supply and
availability of rare earth elements as they are key components in the manufacture of;
computers, Liquid Crystal Displays (LCDs), hybrid automobiles, wind power turbines, energy
efficient light bulbs, sensors, GPS technologies, CD and DVD drives, digital cameras, most optic
lenses, communication devices and satellites, among others.
Could Africa become the next rare
earth elements frontier?
Many of the exploration companies that set out to explore Africa’s rare earth elements
potential are now starting to report some positive progress with their rare earth elements
(REE) projects on the continent.
South Africa in particular has seen a of activity during the last quarter, the country and the
continent as a whole is seen as key to the geopolitical tussle being fought to end China’s
dominance in the rare earth elements market.
A report last year concluded that Africa has enormous potential in that it contains “more than
half the world’s known deposits of carbonatites, a rock formation seen as perfect hunting
grounds for rare earth elements, as well as vast deposits of monazite sands which also contain
rare earth elements (REEs).
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4. The Chinese effect on the REE Market
Rare earth elements (REEs) or rare earth metals are
17 chemical elements in the periodic table. While
many of these elements are actually found
abundantly in the earth’s crust, their geochemical
properties and dispersion make them difficult to
extract in the pure forms necessary for use in many
critical industries.
These rare earth metals are essential for industries
such as electronics, aerospace and clean energy.
Yttrium is used in energy efficient light bulbs and cerium is used in oil refineries as a fluid
catalytic cracking catalyst. The growing end-markets for REEs has made security of supply a top
concern for many industrial corporations and governments around the world.
Since the 1990′s China has become a leading supplier of rare earth elements, in part because
of their willingness to intensively mine the elements at the expense of the environment. Many
countries opted to close down their mining and extraction operations and simply import rare
earth metals from China, as prices were relatively cheap.
However the world received a wake-up call when China began to impose export restrictions on
rare earth metals and deeming them now as a strategic resource. Some analysts believe this
was a policy to encourage high tech industries to move their manufacturing operations to
China, where supplies and prices are more stable.
China maintains that the decision was both strategic and part of a wider effort to minimise the
environmental impact.
Rare earth metals prices could be set
for a boost – report
A report by a leading investment website recently hinted at the possibility of imminent price
rises for various raw materials, including rare earth metals.
According to the report, the EU commission has announced that more funds should be
dedicated to rare earth elements research, in particular focusing on recycling and reducing
waste of rare earth elements.
The announcement was based on the fact that rare earth elements remain difficult to source,
with the EU still dependent almost exclusively on China for imports of rare earth elements.
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5. Unfortunately, the report points out, the technology for recycling rare earth elements is still
largely hypothetical and it will have little impact on the actual mining of rare earth elements
for some time to come.
Japan has explored the recycling route with even greater urgency and yet its technology
companies still rely on imported Chinese rare earth elements.
The EU commissioner has announced steps to improve the supply of rare earth elements.
The proposed steps, at least initially, have less to do with finding efficient recycling techniques
than they do with simplifying trade legislation to speed up the import process.
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