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no, the news is china is ****ti itself over re competition.
The primary causes of this decline in profits are China's economic problems and other nations' readiness to establish their own supply chains for rare earth elements. China has long held a commanding position as the world's largest producer of rare earths. But the nation's industry ministry recently admitted that rare earths now remain "undersold" and "wasted" as a result of "vicious competition."
https://oilprice.com/Metals/Commodities/Chinas-Rare-Earth-Dominance-Faces-Challenges-As-Global-Supply-Chain-Shifts.amp.html
However, processing PG for the extraction of REEs and other valuable elements had not been industrially realized
Well it has now, pea brain.
Https://www.eenews.net/articles/dems-express-grave-concern-about-funding-for-rare-earths/
The top Democrat on the House Select Committee on the Chinese Communist Party is urging the Biden administration to focus more federal funding of rare earth elements, a key ingredient of wind turbines, electric vehicles and defense applications.
The top Democrat on the House Select Committee on the Chinese Communist Party is urging the Biden administration to focus more federal funding of rare earth elements, a key ingredient of wind turbines, electric vehicles and defense applications.
They can buy 10/30% of the mine. Doesn't affect the royalty payment.
That's another 5% annual return looking secure.
Don't think equity raise will be necessary. A dewatering, refurbished mine is valuable collateral.
The (independent) broker rating was 34p? but that was risked at 50%.
So de-risked (i.e. when the oxides are separated at 99.5%) would be double that.
Copper futures over $10k/ton
NdPr now over $56K
Https://price.metal.com/mobile/RE-Oxides/spot
NdPr tops $55K, up 20% from the floor
Https://t.co/DpYfWMUeHh?trk=organization_guest_main-feed-card-text
That would also solve Analysts say these projects are at risk from priceoy producers or magnet manufacturers, but any downstream producers would need reliable supplies of affordable material to secure their own funding.
The US International Development Finance Corporation has invested $105mn into TechMet, which has pledged $50mn of equity for Rainbow Rare Earths
For its part, Beijing is no stranger to stockpiling during market gluts, making record purchases of cobalt year for its strategic reserve.
The US Department of Defense stores critical minerals in the National Defense Stockpile, but its value has dropped from $9bn in 1989 to less than $1bn, or below 0.3 per cent of annual demand globally, as of March 2023.
“For the American and European supply chains to be built, you need a surety built by the government,” said Matthew Ashley, senior cobalt trader at Traxys, a Luxembourg-based trading house.
Brian Menell, chief executive of TechMet, said that despite the efforts of funds like his, “the problem of future shortages and Chinese control is growing day by day”.
He added: “It’s the product of manipulation and the short-term view of western markets.”
A site close to Kruger National Park in South Africa is becoming a testing ground for US attempts to fight China’s global dominance in critical minerals.
Washington has committed to finance a little-known London-listed miner hoping to extract rare earths — a set of 17 minerals key to clean energy technologies — from the chalky stacks outside the safari park, as the US seeks to challenge China’s runaway lead in accessing the metals globally.
But a 63 per cent drop in rare earth prices since the start of 2022 has called into question the project’s ability to raise funding. The fate of the $300mn mine at Phalaborwa may echo that of others aiming to extract critical minerals for the west, and raises the question of whether US support is sufficient to build up a counterweight to Beijing.
The project, whose site is visited by kudus, springboks and buffaloes, is close to completing a feasibility study on the economics of extracting minerals from gypsum waste generated by old phosphate mines — but it still needs to raise another $250mn.
“The question is ‘given the basket price for rare earths, does it make sense to move ahead?’,” said Andrew Breichmanas, analyst at Stifel.
For the White House, tackling Chinese dominance is a strategic priority: China is home to 70 per cent of rare earths mining and 90 per cent of processing capacity, according to the International Energy Agency.
That gives Beijing a near-monopoly on permanent magnets used in electric vehicles, wind turbines and fighter jets. China also controls the supply of other clean energy resources such as graphite, cobalt and nickel.
Washington has been seeking to invest in its own future supply. The US International Development Finance Corporation (DFC) has invested $105mn into TechMet, a $1bn critical minerals fund, which has pledged $50mn of equity for Rainbow Rare Earths, the company behind the mine, when it is ready to start raising finance to build the plant later this year.
Nisha Biswal, DFC deputy chief executive, said the state entity expected to increase investments in African critical minerals, with this year’s total likely to exceed last year’s $700mn. “This is just the start,” she added.
A key element of that is financing projects such as the Lobito Corridor railway to connect a port in Angola with copper mines in the region. And beyond the DFC, Washington is providing incentives for the construction of US processing plants through the Inflation Reduction Act.
Yet recent price slumps in lithium, cobalt, nickel and graphite — all ingredients in electric vehicle batteries — have prompted western producers to shut mines, cut production and reduce expansion plans. Among major miners, BHP is considering closing Nickel West in Western Australia; Albemarle, the world’s largest lithium producer, has cut back spending plans; and Glencore is reducing cobalt output.
Analysts say these projects are at risk from price
The rare earths mine becoming a bellwether for US minerals policy
Future of South Africa’s Phalaborwa site may depend on strength of Washington’s support
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sian 31 Jan '17 - 18:09
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News
18/04/2024 15:50 LSEG_RNS Rainbow Rare Earths Limited Director/PDMR Shareholding
16/04/2024 07:00 LSEG_RNS Rainbow Rare Earths Limited Positive Initial Leaching and Mineralogy Results
28/03/2024 07:00 LSEG_RNS Rainbow Rare Earths Limited Interim Results
Rainbow is listed on the main market of the London Stock Exchange (LSE: RBW) and is focused on producing the separated rare earth oxides required to drive the green energy transition. The four most economically important rare earths, being neodymium and praseodymium (NdPr), dysprosium (Dy) and terbium (Tb), are those used to make permanent magnets, which are in turn crucial inputs to the powering of electric vehicles, wind turbines as well as many other advanced technologies, such as drones, robots and smart phones.
Rainbow’s projects include the Phalaborwa Project in South Africa and the high-grade Gakara Project in Burundi, which are both rich in NdPr, Dy and Tb. Rainbow is also investigating other processing projects, such as the opportunity of extracting rare earth elements from a nitro phosphate process stream at a phosphoric acid production plant near Johannesburg in South Africa.
Through our processing projects, which have fundamentally different risk profiles to traditional rare earth mining projects, we see enormous potential to facilitate near-term access to sources of critical permanent magnet rare earths, required to decarbonise energy systems in an environmentally responsible way.
The Phalaborwa Rare Earths Project, located in South Africa, has a total JORC compliant mineral resource (“MRE”) estimate of 30.4Mt at 0.44% TREO contained within phosphogypsum in two unconsolidated stacks derived from historic phosphate hard rock mining. High value neodymium and praseodymium (“NdPr”) oxide, a critical building block for the global energy transition, represents 29% of the total contained rare earth oxides, with economic dysprosium and terbium oxide credits enha
Https://www.ft.com/content/37966ce4-1dac-41aa-abf4-98f139a8ce32
TRR still have a stake in Bacanora. Royalties have some distinct advantages.
$13m income this year, costs are a million or so. Gold and copper price helping.
I hope they spend it soon, but if they feel the need to start making dividend payments it would help the share price.