PYX Resources: Achieving volume and diversification milestones. Watch the video here.
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Adamas take: Rainbow continues to advance its pot of gold at Phalaborwa with a steady flow of positive developments over the past two years in the face of challenging market conditions.
In January, the company announced the start up of its rare earth oxide separation pilot plant in Florida based on the CIX/CIC process developed by partner K-Technologies.
The process has been used widely in other sectors but remains unproven at commercial scale in the rare earths space. Ongoing piloting in 2024 will determine if Rainbow and K-Tech could change that.
Https://www.newsweek.com/even-new-ev-tariffs-bidens-climate-agenda-benefits-china-opinion-1900612
Thanks for finding the article cadellin.
Genie coming out of the bottle?
https://www.mining.com/crma-rare-earth-elements-a-potential-blindspot-for-eu-policymakers-and-industry-report/#:~:text=%E2%80%9CThe%20outlook%20for%20rare%20earths,industry%2C%E2%80%9D%20the%20firm%20notes.
Sorry last post on wrong board
The first was a completed reserves/resources update and the second was a flow sheet final results in the back end operation State side. The next RNS was South Africa permitting around July. It is time to deliver on this as a DFS, financing and construction were all to happen in the next 24 months.
I am completely shocked that this hasn't moved north on that news. Mka have a forward plan for recycle plants in uk, Germany and US within 2 years.
People will be knocking down the door for these highly green untarriffed gems.
Freeing up some funds this week hopefully to add more.
Tornadotony
" No contest against Rainbow Rare on cost and volume produced per annum."
Please clarify - production of what?
“Following an in-depth review by the United States Trade Representative, President [Joe] Biden is taking action to protect American workers and American companies from China’s unfair trade practices,” the White House said.
Imports of Chinese permanent magnets will be subject to a 25% tariff beginning in 2026, the White House statement said.
“There are several types of permanent magnet but around 80% of the market is dominated by two of them: sintered neodymium iron boron [NdFeB] rare earth magnets, and hard ferrite magnets,” John Ormerod, head of magnetics and metal consultancy JOC, said.
Other types include samarium cobalt rare earth magnets, alnico (aluminium-nickel-cobalt) and bonded NdFeB rare earth magnets.
Sintered NdFeB rare earth magnets are critical components in the motors of electric and hybrid vehicles and in offshore wind turbines, along with many other industrial, defense, medical and electronics applications.
The first time critical minerals have been included in tariffs
There have been numerous rounds of Section 301 tariffs since the start of the US-China trade and technology war in 2018, but none of them has included rare earth magnets or materials.
According to Tuesday’s statement, “the tariff rate for certain other critical minerals will increase from zero to 25% in 2024.”
https://www.fastmarkets.com/insights/us-to-impose-25-import-tariffs-on-chinese-rare-earth-magnets/#:~:text=There%20have%20been%20numerous%20rounds,to%2025%25%20in%202024.%E2%80%9D
Reetech
Treo percentage is a quarter of that found by Pensana in Sulima West in Angola. Sweden is a hugely expensive place to mine ore and I doubt if they will find a partner company. No contest against Rainbow Rare on cost and volume produced per annum.
Thanks SP
The issue in rare earths reminds of what happened when fracking lowered oil prices. The fracking models high graded resource uptake from gas fields and in the end the fracking gas fields became depleted quicker and could not pay back bank debts. China has high graded rare earth resources from its mining especially where it was sourced from imports elsewhere in Asia. Several years of high grading lead to lower grade mining resources and the economic yield reduces. China has pursued the same failed policy as USA used to hit the Saudis a decade ago. In the end mining and resource uptake has to be undertaken at a particular target grade that is sustainable and economic. It then leads to the correct price discovery for that resource. Hopefully this will now happen with the correct use of tariffs. Hopefully China will stop high grading and move to the same economic models as non Chinese owned rare earth suppliers. The playing field then becomes more fair and tariffs can then be removed and the market is sustainable. Tony
Lifton further elaborated, “The supply chain is significantly impacted here. However, I want to caution that this allows the maintenance of high prices for these items in the United States and encourages price increases because many in the rare earth sector, especially the junior miners, are not profitable. By adding 25% to the price, they can sell their rare earth elements for 25% more, based on the contained value in a magnet from the Shanghai metal market, for example. This could make them profitable. Therefore, this change is going to trickle down to the miners and will definitely have an impact. This is a significant shift because, interestingly, a 45% tariff on magnets implies that, since the prices of magnets and rare earths fluctuate daily, the tariff ensures that the price on the day of sale or purchase will be 25% above the stated Chinese price, likely from the Shanghai metal market. This is a substantial boost for the rare supply chain. I’m not sure it benefits the American consumer, as it certainly won’t lower prices at all.”
https://investornews.com/critical-minerals-rare-earths/us-tariff-policy-towards-china-designed-to-alter-competitive-landscape-for-graphite-and-magnet-materials/
I hope so as well, otherwise all those cheap Chinese EVs will be dumped on the European market. Although I guess the anti dumping laws would come into effect then
How will they get on with 400% tariff on Chinese EVs from USA. That is like 400% on Chinese NdPr prices. Hopefully EU follows the USA.
China Pr-Nd alloy output rose in April and is poised to grow further in May
https://news.metal.com/newscontent/102747126/China-Pr-Nd-alloy-output-rose-in-April-and-is-poised-to-grow-further-in-May
Personal opinion from me is rare earth prices being depressed to hoover up companies/projects cheap (china) but even in this climate rainbow would still make a very good profit.
Think as soon as Brazil is not just m.o.u. share price will rocket even without Brazil rainbow is worth at the least 3x at present share price
Rare Earths in the Defence Sector
In the defence sector, rare earths enable the development of more efficient, agile, and intelligent military capabilities and combat systems. They are now essential for, to name but a few examples:
night vision devices
precision guided weapon systems
communications equipment
navigation systems
batteries
stealth technology
drones
laser target designators
communication satellites
Alloys, superalloys, and high-performance metals are also used in armoured vehicles and projectiles to make them hard and tough. These rare earth metals and alloys can be found in a stand-alone weapon system or as part of subsystems that form part of a more complex weapon system such as a frigate or fighter aircraft.
UK to spend 2.5% of its GDP on defence and the rest of Europe to soon follow. 1 single frigate requires 1.5 tonnes of rare earths. USA and EU to stock pile rare earths from next year to ensure independent supply from China.
REeeTech, we may have a common line of thought here. there is a consensus from various parts of the ex China industry that RE prices are going the way that uranium has recently. Despite the recent hiccup, almost all market analysis, including Adamas, and Markets and Markets (published May 2024, ie just now) with a base line 0f 2023, are forecasting a 12.6% CAGR until 2030, assuming a base of $60,000/mT for NdPr Oxide, that's $150,000 in 2030. An extract of the report found here. (im not spending $4000 on the full report although i would love to read it) https://www.marketsandmarkets.com/Market-Reports/rare-earth-metals-market-121495310.html?gad_source=1&gclid=Cj0KCQjw_-GxBhC1ARIsADGgDjv96Lx_Frc8vHyBepSxKqVAzQ0Man_caoLcGLj3uX8ZGNr8P4MbJ5gaAjANEALw_wcB
Think you need to get back on that 'slow boat' mate , no one is listening here. TTFN.
Https://www.miningweekly.com/article/energy-fuels-building-up-its-monazite-supply-chain-for-ree-production-2024-05-06
Mumbles2021,
These publications indicate that the situation is changing for the better.