EDITOR: | September 7th, 2017 | 7 Comments

InvestorIntel Rare Earths Monthly – August 2017

| September 07, 2017 | 7 Comments
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And August 2017 has not let us down. Prices ticking along nicely; control of illegal production news coming out of China; a sustained good news story around the world on the growth of wind farms, solar and green vehicles; and are the politicians really starting to see that these technology elements are really important? All good news, but no really exciting news from budding producers. Maybe it’s just the end of the Northern summer blues. Well, for mine the really significant, almost game changing news came out of China late in the month. The Baotou Industrial Park expansion! More discussion on that later.

Let’s look at the news on rare earth prices.

The trend is still encouraging. As the impact of the more and more green energy related news comes through then only good things will follow. And again, the news out of China is for further increases.

Below is the list of published information pieces (with hyper-links where possible) from:

  • China
  • Other Countries
  • Rare Earths related market research and commentary

And where it represents a shift in an REO-business fundamental I will provide commentary. Note that certain references will require registration or purchase (*).

China

Date Source Title
3 Aug ValueWalk Rare earths are China’s most potent weapon in a Trade War
4 Aug HuffPost China’s not so secret weapons – Rare Earths
10 Aug China Daily Officials: Let up on rare earths
12 Aug WhoWhatWhy China monopolizes crucial rare earth minerals
12 Aug Industrial Minerals* August rare earth price rise in China
12 Aug Adamas Intelligence Chinese NdPr oxide price up 50% YTD – Panic or Party?
16 Aug Argus Webinar How will rare earth production control in China impact supply?
23 Aug Nasdaq China Rare Earths Association proposes stock release to ease price volatility
25 Aug Industrial Minerals* China rare earth companies post strong H1 results
29 Aug China Daily Huge rare earth industrial park coming to Inner Mongolia

Other Countries

Date Source Title
1 Aug The Edge Markets MY Rare earth panic rises again, now thanks to Trump: Adam Minter
9 Aug Mongabay.com Troubled firm aims to mine Madagascar forest for rare earth elements
9 Aug Business Day*

Russia

New fund aims to invest in the metals that will power our world
13 Aug Fox News Trump’s game of chicken with China – a trade war that could leave him Twitter-less
17 Aug Energy.gov

USA

DOE invests $17.4 million in projects to advance recovery of rare earth elements from coal and coal by products
21 Aug Korea JoongAng Daily Supply of vital materials becomes a big worry
23 Aug Mongabay.com Audio: A rare earth mine in Madagascar triggers concerns for locals and lemurs
25 Aug UKNow

USA

Honaker awarded $6 million from Department of Energy for Rare Earth Element recovery pilot plant
26 Aug Investor’s Business Daily America’s critical minerals dependency: A Clear and Present Danger?
30 Aug The Diplomat

USA

Revisiting Rare Earths: The Ongoing Efforts to challenge China’s Monopoly
30 Aug Coal Age July/August 2017

Vol. 122 No. 6 (pps 28-33) USA

Government bankrolls initial efforts to extract rare earths from coal waste

Market Research and Commentary

Date Source Title
2 Aug MarketWatch* Samarium Oxide market growth prospects with Company profiles analysis available at ReportsnReports
2 Aug Australian Financial Review Rare Earths and Free Markets
2 Aug InvestorIntel InvestorIntel Rare Earths Monthly – July 2017
5 Aug Top Examiner Global rare earth polishing powder market segment by applications Passenger Car, Commercial Vehicle, Optical Lens, Optical Instruments, Cameras
8 Aug InsideSources Why a Low-Carbon economy drives the need for Rare Earths
9 Aug openPR* Gadolinium Oxide market Share 2017 China Minmetals Rare Earth, Longyi Heavy Rare Earth
13 Aug WhoWhatWhy What is Neodymium and why is it so important?
13 Aug Digital Journal* Global Ceria Market 2017 – Solvay, DuPont, Nanophase, Nyacol, HEFA Rare Earth
15 Aug Adamas Intelligence* Rare Earth Market Outlook: Base Case price forecasts from 2017 through 2025
17 Aug Financial Times Optimism over electric cars sparks rare earth price boom
17 Aug Digital Journal* Global and USA rare earth elements (REE) market status and forecast by players, types and applications to 2022
17 Aug TalkHerald* Global rare earth Phosphors market 2017 – NICHIA, Mitsubishi Chemical Corporation, Dow Electronic Materials and Intematix Corporation
17 Aug Mining Journal Local electric car stock surpassed 2 million vehicles in 2016, after crossing the 1 million vehicles threshold in 2015
21 Aug Bloomberg Switch to Renewables won’t end the Geopolitics of Energy
22 Aug Creamer Media’s Mining Weekly Rising prices signal end of “hand to mouth” CREE Market
25 Aug ShareCafe Opportunities always exist: Infrastructure requirements for the electric car boom
27 Aug Market.Biz Global rare earth Giant Magnetostrictive Material Market 2017 covering USA, Europe, China, Japan, India, South East Asia
27 Aug OilPrice.com Could Tech create a new Paradox of Plenty?
29 Aug Chemical & Engineering News A whole new world for rare earths

The rare earths from coal wastes story is developing but I expect will not be a fundamental change for some time to come. I will however keep you posted.

Still await news on any Mountain Pass developments. The re-development plans should be quite interesting.

The news of the month and possibly the news of the year. Well surely it has to make you re-think the whole rare earths development philosophy – “The Baotou Industrial Park expansion”.

I have been to Baotou a number of times over the last 12 years and the growth in the value add industries built around the Bayan Obo Mining District is truly staggering. It is so difficult to comprehend the growth, but it is there to see. I can only re-iterate my thoughts that development of Rest of World rare earths resources without a connection to China is a model that I cannot foresee.

See you next month.


Steve Mackowski

Editor:

Mr Mackowski is a qualified engineer in mineral processing with over 30 years technical and operational experience in rare earths, uranium, industrial minerals, nickel, kaolin ... <Read more about Steve Mackowski>


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Comments

  • George Byers

    Steve, don’t forget the Aug. 21 announcement that General Atomics and Rare Element Resources have entered into a significant investment agreement that will allow RER to continue its permitting activities at the Bear Lodge Project in Wyoming and keep it on its way to becoming America’s next primary rare earths producer.

    September 8, 2017 - 9:04 AM

  • Michael

    Without doubt, the REE prices are rising.
    It is just the question of whether it is sustainable, or speculation of the stock market, or deliberately induced by China?
    But there are also differences between LREE and HREE.
    It is therefore necessary to distinguish very precisely between the deposits.
    Bayan Obo is one of the large LREE deposits (Bastnasite, Monazit), neodymium is no problem, but with the HREE (Tb, Dy, Er,…) it looks worse.
    Furthermore, how much radioactive waste is produced plays a role for a “good deposit”.
    Ultimately, the extent to which the deposit has already been developed.
    Lynas Corporation, which is already in production now has great advantages now!
    Other projects such as the already highly developed Nechalacho (HREE) project in the NWT have a good chance of success also.

    September 8, 2017 - 1:54 PM

  • Chris

    Hi Steve
    Would be great if you could shed some light on the Dy price situation. After a sharp rise in July/August, China Dy price has fallen just as sharply and erased all gains made over the last month or so. Could this potentially be the new long term price trend for Dy?

    Chris

    September 9, 2017 - 12:06 AM

    • Steve Mackowski

      A little difficult to say at the moment. Dysprosium substitution is still in play whilst those choosing to keep it in the magnet recipe maintain an advantage. Will be interesting to see over the next few months.

      September 9, 2017 - 12:51 AM

      • Tim Ainsworth

        Spec money washing thru DyO in just days tells the story, higher cost, lower flux.

        September 11, 2017 - 6:48 PM

  • Chris

    Guess it all comes down to cost competitiveness and if the cost outweighs the advantage. Those still using Dy more then likely finding ways to reduce amount by using techniques such as boundary grain diffusion. Dy price falling off a cliff again clear sign of things to come IMO.
    Note Ce and La price has seen a some improvement over last month. LREE story looking strong while HREE story not so much.

    September 9, 2017 - 11:33 PM

  • Alex

    As I know , each Works has it own quota for each Element from Chinese Gouverment till the end of Chinese year (February 2018) . Some of Works are already used quota for some elements. so, they can not produce this material till the end of the year. so, for some elements may be rising price till February because Buyers who need materials till this period may be can not buy it.

    September 11, 2017 - 4:16 AM

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