Rare Earth Metals or REEs and China

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http://www.financialpost.com/China+imposes+export+quotas+rare+earth+elements/...

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[dude2755]

But its just cheeper to let it sit a decorative land fill and make a new tv instead . Think about all the effort it to get americans to recycle.

[dokkiro]

@WallStForMainSt In Asia there is this sayings that came from Confucianism beliefs. Fox kept giving away free shoes to monkeys until they couldn't climb trees without shoes, then fox started to charge money for shoes. Same was true for all those illegal copies of Microsoft OS.

[WallStForMainSt]

@dokkiro- Environmental corners were cut in extreme ways to deliver cheap product to sell even if it meant ruining the soil and water around the mine, getting workers sick, etc. Japanese corporations also bribed these Chinese miners to give them even cheaper metal below market price. All of this is ending thanks to new Chinese policy. Productions costs are going to skyrocket. This will allow REE miners worldwide to compete on a level playing field.

[WallStForMainSt]

@dokkiro- Uranium is recyclable with Thorium. Look into Lightbridge's Uranium/Thorium dual reactor. Thorisum is a very remarkable element. It could be the ultimate future of nuclear power. It failed in the 1960s and 70s to establish itself, but might succeed this time over the next 5-10 yrs in supplanting Uranium. As for REEs, China has been subsidizing REE production for a long time and that has been allowing Chinese REE miners to sell REEs below the true production cost.

[dokkiro]

@WallStForMainSt All I'm telling you is Chinese do value REEs only as much as how much they can sell it for. You just don't seem to get the fact that REE is just a natural resource people sell for cash just like anything. Yes very true limited resources however I do doubt we will completely runout of it like petroleum or uranium which are not recyclable.

[dokkiro]

@WallStForMainSt recycling is cheaper than extracting it from the raw materials in any cases of minerals such as aluminums. One country can sit on 99% of all the gold deposits but it becomes useless. The rest of the world just wouldn't value it. I've heard reports that even Japanese are really not that worried much because of their recyclable surpluses.

[WallStForMainSt]

@dokkiro- Yes, I know REEs are not that rare but there was almost 2 decades of underinvestment in the industry and capital is just starting to flow into the sector recently. REE is not recyclable in a very environmentally friendly way nor is it cheap. It is highly energy intensive. The Chinese have no use? LOL

[dokkiro]

@WallStForMainSt 1. REE is really not that rare 2. Cheap labors was the reason behind 97% of Chinese monopoly. 3. REE is recyclable. 4. Demand for REE became obsolete because of use of newly discovered materials. 5.Chinese will have no use for their mountains of REE surplus they cannot process.

[WallStForMainSt]

@BLUERAY1611- Japan is now in full panic mode to secure REE supplies from sources outside of China. Add Brazil to the list of countries Japan is trying to help fund to secure supply.

[WallStForMainSt]

@dokkiro- Incorrect. China can no longer flood the market with cheap REEs. They imposed even more environmental restrictions recently. Production costs are going to go sky high. They also have at most 15 yrs left of REE reserves at current demand levels and that's assuming demand does not rise.