China's Rares Cooking Up a Storm

[Monsterzuma]

True, but what if motives other than simply making money come into play?

there isn't a more powerful force in the universe than the profit motive.

 

[Disgustipated]

We should just reopen the mines we have. They aren't the only source. Just the only current source.

This, a mine recently opened back up in Nevada, at least partially. It had been shut down because of cheap imports.

For national security purposes it's not good for us to rely on parts from China.

 

[dido]

It's their nonrenewable raw material. They can do whatever they want with it.

Whining like a bunch of crybabies to the WTO just proves that the EU countries are imperialists trying to exploit less developed countries.

 

[AlpsStranger]

I would keep something that i posseses in large quantity, rare. I see nothing wrong with Chinas strategy. Its a fine line, but humans don't need so many electronic equipment at such low cost.

Cool. Nobody had instructed me as to what I needed yet today. Any more bits of wisdom? How many calories a day am I permitted?

 

[IAM]

I see a bright side here. Allowing China to keep most production even if others are charged more will mena they won't have reserves in a fewww decades and the rest of the world will. That's also a reason I would much rather pay a bit more to pump the middle east dry of oil and keep our own fuel stockpiles for a rainy day.

 

[Antilogic]

We should just reopen the mines we have. They aren't the only source. Just the only current source.

95% of production, not reserves. Though they may have more reserves of some rare earth minerals, too, that isn't the case across the board.

This. Rare-earth metals are so named because they are present in small fractions of any given rock, but they are fairly well-distributed around the world when examined in aggregate. It's kind of misleading.

The major reason why we don't mine for this stuff in the US is the purification required after the ore is obtained--it causes tons of environmental damage and pollution. The Chinese are basically poisoning themselves to get their rare earths out of the ground. I'd say let them kill themselves while we study how to do it cheaply, cleanly, and effectively. Then we can start mining again.

 

[madviking]

This. Rare-earth metals are so named because they are present in small fractions of any given rock, but they are fairly well-distributed around the world when examined in aggregate. It's kind of misleading.

The major reason why we don't mine for this stuff in the US is the purification required after the ore is obtained--it causes tons of environmental damage and pollution. The Chinese are basically poisoning themselves to get their rare earths out of the ground. I'd say let them kill themselves while we study how to do it cheaply, cleanly, and effectively. Then we can start mining again.

This is pretty much how any mining happens. The number and amount of elements/compounds that are not spread around even is pretty low. So, take what Antilogic says, and just let them dig themselves into health and environmental problem holes.

 

[AlpsStranger]

This is pretty much how any mining happens. The number and amount of elements/compounds that are not spread around even is pretty low. So, take what Antilogic says, and just let them dig themselves into health and environmental problem holes.

I keep thinking that weeks before China becomes the world's #1 superpower they somehow manage to poison their entire population

 

[Takhisis]

There's a lot of reserves in Australia, too.

Masada posted at one point that there's a price ceiling below which China can have a virtual monopoly, but if the prices go any higher other mines elsewhere become competitive. If i'm remembering that right.

Could this possibly be related to China's enar-slavery workign conditions?

 

[Oerdin]

If Red China is gonna hold a monopoly on these minerals. Then we should open up our own mines!

It's very easy to reopen the old mines as there are plenty of reserves left. The problem is if China follows it's previous pattern it will just end the export restrictions, subsidize their own mining companies so prices collapse again, and in short order those mines will once again all go out of business because they can't compete against subsidized REEs coming out of China.

If we want to keep mines outside of China open then we either have to restrict Chinese dumping of state subsidized REEs or else offer matching state subsidies to our own REE producers. Neither is a great option and the best of all worlds would be if China simply stopped cheating and ended it's own state subsidies. Good luck trying to get China to stop being protectionist though.

 

[BasketCase]

I would keep something that i posseses in large quantity, rare. I see nothing wrong with Chinas strategy. Its a fine line, but humans don't need so many electronic equipment at such low cost.

Homeless people with cell phones

 

[Spidernova]

Is it possible to recycle rare earths? Because if so, then all those old phones, computers and the like will become a lot more valuable

 

[Akkon888]

They've got a point on the environmental impact though. Rare-earth mining is diabolically harmful in that regard.

 

[Arwon]

I think this is a bigger deal than some think here, you can't simply 'open up mines' on moments notice. If the price of these go up and other countries decide to tap their reserves, they will still be at China's mercy for years to come.

I actually don't think there's really a lot of leverage China can have over Australia in that regard. Plus, my bet is one of our many large mining companies is pretty much ready to pull the trigger at short notice. There's already a couple of projects in the pipeline here.

 

[Antilogic]

Is it possible to recycle rare earths? Because if so, then all those old phones, computers and the like will become a lot more valuable

Yes, and it is actually a good strategy for hedging against the price of rare earths. GE instituted a policy where they would collect their old high performance turbines, extracted the REs, and used them in new turbine production. It saved them a bundle when the prices jumped several times over.

RE prices now are artificially low because they are mostly produced as byproducts of other mining operations. If we were mining intentionally for REs, it would be wayyy more expensive.

 

[Old Hippy]

Plus, my bet is one of our many large mining companies is pretty much ready to pull the trigger at short notice.

Lynas Corporation has opened a $100 million mine in Western Australia expected to supply up to 14 percent of the world's rare earth material ... I think the main problem is processing them... their $230 million plant in Indonesia is being held up on Environmental grounds, but along with several other miners in SA/NT/QLD there is no shortage of production already in the pipeline