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Recycling is extremely difficult and its going to be many years before there is noticeable quantity of material available to recycle.
Then there is the point that they are withholding the technology to manufacture the magnets, which recycling offers no help at all.
Sounding like a man from red and gold. Do you hold mka?
Worth a read:
https://japannews.yomiuri.co.jp/politics/politics-government/20230406-101783/
Building recycling hubs that then manufacture rare earth magnets can though... oh hello! :)
The recycling route will bring profits far sooner than the mining route as COTEC said
Japan gave China much of that tech and manufacturing ip
And to be clear last time they blocked the export of product this time its the block of manufacturing technology and ip.
Can they legally do this, yes.
If there anything we can do to mitigate it, not really, building a mine won't help.
And it backfired
They've done it before ...
https://asia.nikkei.com/Spotlight/Supply-Chain/China-weighs-export-ban-for-rare-earth-magnet-tech
China won't pull the plug, it's counterproductive.
Your response to me is asymmetrical.
Anyway, back to what matters - the China pulling the plug on Rare Earths exports vibe is building:
https://twitter.com/BurggrabenH/status/1644326884426104832?s=20
They vastly over extended the investment requirements and made no effect to produce a creditiatable investment case.
Never even bothered to produce a DFS after cancelling the BFS. Nevermind their thorium problem.
It's not just about credibility, it's use of the international banking system, the IMF, subsidises and trade deals.
China isn't going to break a system that allows them to invest securely.
>>They're a sovereign state, they can do what they like - there's no such thing as international law, only local laws.
That point blank wrong. African states and China will stick to international laws and mining agreements because its in their interests to do so and because internal courts will apply penalties which will be collected.
I guess it's perfectly possible MKA could sell Songwe to the Chinese but I don't think it's possible Malawi could or would nationalise Songwe at undervalue or otherwise rescind MKA's Songwe licences. Malawi's building international credibility for example with the US and with deals like with GBE. The money Malawi will get from the royalty and equity stakes in Kanyika Songwe etc depend on its political fiscal and legal stability. Malawi's maturing.
https://www.linkedin.com/in/william-dawes-50881352/recent-activity/
Yeah
Have they done that before? There's poor old Lindian resources and others spending a pretty penny in Malawi right now you would think if a gov that just recently gave Mkango ESHIA approval for Songwe were then to somehow just snatch it all away to gift some mythical imaginary Chinese offer that all western companies would pull out and never invest there again ....to my mind that is not a worry here
Bonker, I can assure you that I’m not so feeble minded as to think that a question I, or anyone else for that matter, might ask on here might in anyway affect the share price of a company. And as for your point about ‘they’d get a bad name if they did that’ - I just think it’s naïveté. International norms are now no longer that. This is the age of guess what happens next. But your first paragraph does give some substance. Legally, they can do what they want.
They're a sovereign state, they can do what they like - there's no such thing as international law, only local laws.
Given that they're super keen to get multiple mines going and have just dropped an MDA for one of those it would seem unlikely to say the least that they're up for stiffing other companies - they would never get another project over the line if they did that.
People will continue to raise the question because they want to accumulate at the lowest price possible ;)
A few days ago on the Cotec discussion, I posed the question whether or not Malawi could ditch Mkango and hand the tenement to one of our hostile neighbourS - China/Russia etc. someone gave a good answer why not at the time but I can’t find it and someone has raised the question again today. So, if anyone can be bothered, can they kindly give an opinion on whether or not Malawi can legally take Songwe off Mkango at this point. Especially if a deal cannot be agreed. This is still something that concerns me. Forget getting a bad reputation, I don’t believe that’s enough. Is it legally possibly for Chakwera to say, if you’re not happy with our terms Xi and his gang have got a lovely offer for us. Au Revoir..
That was my worry as well but I think the signing of the Globe MDA is a positive sign that Malawi are still doing what they say they are going to do. This is a nasty market at the moment. Fear is riding high, many great shares are being pummeled. This is when great opportunities emerge.
As long as Malawi does not decide to throw their support behind the East. This was one of my concerns here before deciding to take the plunge anyway. I guess this fear will be significantly reduced if we end up getting that deal finally over the line...
If you have capital to invest over a 12-48 month timeline this is now a highly appealing option. The mine, refine, recycle format has just entered into the market at a critical time. Come on BOD, get this MDA over the line and let’s turn this into a beast. God I wish I could average down right down as my AV is still up around 30. DYOR.. GLA.
'BEIJING — China is considering banning the export of technologies used to produce high-performance rare earth magnets deployed in electric vehicles, wind turbine motors and other products, citing “national security” as a reason, it has been learned.
With the global trend toward decarbonization driving a shift toward the use of electric motors, China is believed to be seeking to seize control of the magnet supply chain and establish dominance in the burgeoning environment sector.
Beijing is currently in the process of revising its Catalogue of Technologies Prohibited and Restricted from Export — a list of manufacturing and other industrial technologies subject to export controls — and released a draft of the revised catalog for public comment in December. In the draft, manufacturing technologies for high-performance magnets using such rare earth elements as neodymium and samarium cobalt were added to the export ban. The solicitation of comments ceased late January and the revisions are expected to be adopted as early as this year.'
Mkango via Magnito is going to soon be actually manufacturing rare earth magnets for the industry both from recycled sources and when it happens Songwe mined sources....
A good place to be methinks ....
Some might call that a perfect storm for Mkango. What an insane share to be in at these levels. No wonder there’s no shares knocking around I imagine they’re rare as rare earths.
Eyes down chaps.
https://www.zerohedge.com/markets/china-weighs-rare-earth-magnet-export-ban-retaliation-biden-chip-crackdown
shorts that operate on such large volumes of stock are pros that know what they are doing. they are not about to get caught to the benefit of guys like us. lol