Off script, Rick Pobjoy presented the key take away message of his entire talk - to paraphrase:
‘… the same style that has underpinned China’s massive Rare Earths industry, clay-hosted Rare Earths amounts for only 1% of their total resources, however, production from them is as much as 35%.’
Wow – that much!
When you put that number into perspective, AR3 has the potential to be completely disruptive. Not just for all the other hard rock REE wannabes outside of China but for China’s natural desire to dominate and control the market.
Rare earths is by nature a ‘low-parts-per-million’ numbers game. So, if we can all agree that it’s all about ‘recoveries’, at that tininess of scales then, AR3 has the potential to capture a large huge chunk of market share in a similar way that PLS has done with lithium.
This is fantastic news for OECD economies and the global thematic to decarbonise by transitioning to green technologies where most of the growth lies. Mainly because it provides Multinationals with the confidence to heavily invest in these projects knowing that supply chains can be assured of cost-efficient raw material from a sovereign-trusted country, like Australia.
The consequences for this are pervasive. We all can’t be winners but some of us are just born with rare levels of good fortune and superb timing.
Exciting times!
All IMO, DYOR, GLTA(patient)H
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