Ann: Shenghe Investment and Funding Term Sheet, page-61

i think strongest and smartest method western countries will do to support the rare earth industry is to put proof of origin on the product and then set standards in good environmental management - atm the poor environmental standards of mining the ore in china and more particularly in Myanmar is a huge contribution towards its lower ore prices. to even the field for all developments western countries will seek to do something along those lines. Tariffs are not sustainable and distort markets which creates their own issues - the article Allan shared illustrates this perfectly.. but regulatory standards places a floor on cost of productions, so not to be awarded to the lowest model of environmental destruction. i think shenghe are aware this will be coming into place over next decade and so one reason why they are positioning to suppliers in countries and companies with better regulatory environmental standards then their current ore market provides. Myanmar doesn't offer the political stability to provide this regulatory framework like tanzania does in environmental policy.