‹ Minerals

Northern rare earth potential

July 26, 2012

China controls 97% of the world’s rare earth reserves. Three rare earth prospects in the far north are moving towards development.

Rare earth elements consist of 17 elements in the periodic table, specifically the fifteen lanthanides plus scandium and yttrium. Scandium and yttrium are considered rare earth elements since they tend to occur in the same ore deposits as the lanthanides and exhibit similar chemical properties. Rare earth elements are heavier than iron.

According to China’s draft rare-earth development plan, annual rare-earth production may be limited to between 130,000 and 140,000 [metric tons] during the period from 2009 to 2015.  In September 2011 China announced the halt in production of three of its eight major rare earth mines, responsible for almost 40% of China’s total rare earth production. Rare earth elements are not exchange-traded in the same way that precious (for instance, gold and silver) or non-ferrous metals (such as nickel, tin, copper, and aluminium) are. Instead they are sold on the private market, which makes their prices difficult to monitor and track.

The most promising three northern rare earth projects are:

Commentary

It is noteworthy that the metallurgical test work for the Hoidas Lake project is taking place in China. The Nechalacho project is moving to development in the next 4 years. The Kvanefjeld project would have a much longer development time horizon.

Sources

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