From SchiffGold.com:
China’s recent attempt to secure reserves of rare earth minerals failed when rival companies moved in and snatched the trade.
Australia-based mining company Vital Metals said Monday that minerals mined at its Nechalacho project in Saskatchewan will stay in Canada.
“A case has been presented that is of growing interest to Canada.” Jordy Mark, Managing Director of Vital He told the Northern MinerHe later added:
“This agreement underscores the strategic value and importance of the Nechallacho rare earths project and the priority of the rare earths value chain in Canada.”
According to Vital, the Necha Lacho mine in northern Canada could hold more than 200 million tonnes of rare earth elements (REEs) used in green energy production and weapons manufacturing. Currently, China dominates the industry despite having relatively few natural resources.Accounts for 75% of the global market It accounts for just 35% of the world’s REE reserves.
“China has been able to achieve such dominance in the rare earth industry because of its lax environmental regulations,” he said. Jaya Nayar of the Harvard Independent Review.
“This low-cost, highly polluting approach has enabled China to outperform its competitors and establish a foothold in the international REE market.”
That is, rare earth elements can certainly produce green energy, but it is 2,000 times more devastating toxic waste. Many Western countries To accept this trade-off within their own borders, impose strict regulations They rely on domestic rare earth element producers, allowing exporters such as China to remain competitive despite high asking prices.
Why is Canada allowing and seeking to profit from REE mining despite the environmental risks?
The answer lies in Canada’s Critical Minerals List, which includes REEs and 33 other elements/element groups deemed strategically and economically important. Recent expansions to the list have included high-purity iron, phosphorus and silicon, which, like the REEs and the other 20 elements on the list, are also included. Key Building Blocks of the Green Energy TransitionThis update, and the last-minute raid to protect REE supplies, offers a glimpse into the role that “green” policies may play and foreshadows increased pressure on component supply chains. If other countries follow Canada’s lead, prices of related products could rise. Metals on the important list-Cobalt, platinum group metals, rare earth elements, Siliconand copper— a big increase is expected. This is an early bet by Canada by securing access to rare earth elements while excluding China from the trade.
The recent acquisition by Canada’s Vital Pharmaceuticals is also part of a larger economic and political offensive led by Prime Minister Justin Trudeau. He told reporters there was no settlement. Canada and China are at odds over allegations of election interference, and in mining, Canada has positioned itself as a direct competitor to China and touted its vast mineral wealth. Alternative information source for wary European countries They fear relying on Chinese manufacturers, and while missing out on one deal with an Australian company is unlikely to undermine China’s dominance, the move certainly sends a message that will worsen already strained relations between China and the West.
As if its agenda wasn’t clear enough, Canada recently joined the United States, Japan and the Philippines in Military exercises in the South China Sea. Tensions are rising between the four countries, with economics becoming a major battleground. With rare earth elements a strategic focus and green energy policies high on the Western agenda, the countries could pressure each other by imposing sanctions or straining metals supply chains, a move that strategists on both sides are sure to consider. With two of the world’s largest rare earth element holders fighting over their stockpiles, pressure is growing for consumer countries to take sides, and this new sign of conflict in the metals market is likely to drive up prices of rare earth elements and related metals as countries build up stockpiles while supplies last.
It’s not just rare earths that will rise in price. Although silver is not considered “critical,” it is a component of electric vehicles and other “green” technologies, and governments (and private investors) are likely to buy it up in anticipation of tight supplies. Pressure on the metals supply chain is Part of a golden lifelinesuggesting that the price of this metal will also rise.
Good news for investors looking to hit the bullseye: REE prices bottomed out last year and are showing signs of recovery, meaning they’re poised to buy at lower prices.
“I have seen future projection studies that don’t even consider demand from the defense sector. [the global annual turnover for REEs] By 2050, it will easily exceed $1 trillion.” Melissa Sanderson said. Consultant for American Rare Earth Corporation. “It’s a good, strong market right now and looks like it’s on a healthy foundation.”
From Zerohedge.com
Other popular articles from Oilprice.com:
