Longtermlegs,
The engine has been ignited again under the REE sector,
only this time around--with an emphasis on the 'Heavies'.
Probably worth reflecting on Dudley Kingsnorth's recent
article on Aug 7th/13. (ABB)
The money that's being invested in finding 'alternatives'
for RE 'within' the next 3/4 months is going to revert to
finding new applications for RE.China's stockpiles have
been run down and are clamping down 'hard' on illegal RE
mining.
In 2010/11 when prices were going ballistic-end users
built up 'huge' stockpiles of RE-that was probably
equivalent to 3/4 years worth of consumption.
In 2010/11 companies brought a lot of illegal RE from
China. They are getting towards the end of that material.
As a result,we are going to witness a "BIG" pick up in RE
purchases toward the end of 2013.
We are going to see a recovery in prices in the fourth
quarter,but more importantly,we are going to see a return
of the "volumes" we saw a few years ago-in spite of the
reduction coming out of China.
If we had the same reduction in demand for hybrid vehicles,
IPads and smartphones,we could have had millions of people
out of work.That hasn't happened.The China growth/demand
for those consumer items-which consume a lot of RE in their
manufacturing-has remained unchanged.And that to me is
"fundamental" to the fact that RE consumption has stayed
very much the same in the past few years.IT HASN'T FALLEN!
We are about to witness a rebirth and rejuvenation in the
RE sector--specifically at the end of this year/beginning
of 2014. (Howzat for NTU's Jorc timing! :)
We will see a growth demand of 8%to 11% over the coming
years--resulting in total global demand of 160,000 TPA
REO in 2016.With a real prospect that demand will exceed
200,000 TPA in 2020.
Nevertheless, the lack of any ROW Heavy Rare Earth
producers remains a real concern to consumers.But,
recognized as being a 'real opportunity' and is being
addressed by several junior companies.
***
To add grist to the mill...
Liu Yinan,Vice Chairman of the China Chamber of Commerce
of Metals,Minerals and Chemicals,Importers and Exporters,
said in an interview last week that the country's "light
RE' reserves are sufficient for 100 years.However,he said
that China's National Strategic Stockpile should focus on
Medium and Heavy REE.
***
The 'Dome' is surrounded by Sandstone-and is wildcat
territory--as was once the now productive,Eromanga,
Cooper,Surat,Bowen,Canarvon,Perth,Gippsland,Gunnedah,Otway,
Amadeus,Canning,Bonaparte and Browse basins-amongst others.
Successful explorers safeguard their data to maintain their
competitive advantage.This has resulted in a lack of
understanding of Geological factors controlling our Top End mineralization,Hence,there is great interest in Northern's
current/future drilling programs.
And the main focus behind all current drilling programs in
our Far North is to understand Hydrothermal systems and
develop models that enhance mineral exploration.
However, with Northern just starting to scratch the surface
of its potential-and Xenotime not having the 'rubbish' RE
CE and LA to process out of the mix--must put NTU in the
running for the high stakes cup.
China is using Govt money to stockpile RE--why can't we.
And what is the real story behind this telling move?
(Look to tin for clues :)
Go well guys
HM
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