japan seeks 30% cut in rare earths use.

If you read this headline below, one will think that the sp of RMR in relation to its Greenland REEs project will dive to as low as 0.5c per share once the market opened come Monday morning.

If RMR sp goes down to 0.5c from current lacklustre 2.4c, it will be great for all those who can put things into perspective and scoop it up like there is no tomorrow.


Key points:

1. No known 100% REEs alternative found yet.

2. The planned reduction is clearly in response to rapidly shrinking supplies from China, the dominant rare earths producer. This mean if REEs is readily available, there will be an increment in use rather than a reduction.

So the Japanese being the world number 4 top individual exporter nation after China, Germany and USA, of which a lot of its high techs depend heavily on REEs as the fine production point, came to realize it is unwise to depend their "lifeline" on something "rare" from another nation which is China who practically have a stranglehold on not just Japan but the entire world REEs supply chains.


3. Existing alternatives/workarounds come with a downfall, meaning products made without REEs are not as good as using REEs but hey, it's not like you and I can drive at 300 km/h on any street or highway without breaking the law right? So what does it matter if the car without REEs will cost more to ran and run at a reduced possible max speed of 250 km/h? instead of 350, huh?

Of course it is different story if it will cost a dent in speed and/or efficiency in any military application. Can you imagine USA using inferior missiles compared to that of China with full REEs sugarcoated? Yea sure that day may yet come but surely, not in this way.


4. So while talking about reduction which cannot be said to be in absolute long term projection, Japan is now also looking for alternate suppliers outside China from Australia and everywhere in the world that can produce REEs.

Based from source:

Japan seeks 30% cut in rare earths use
By Jonathan Soble in Tokyo
Published: February 25 2011 13:36 | Last updated: February 25 2011 13:36

Japan has unveiled a Y110bn ($80bn) programme to cut the use of rare earth minerals in its vehicles and electronic goods by one-third, in response to rapidly shrinking supplies from China, the dominant rare earths producer.

Full article:

http://www.ft.com/cms/s/0/4b63b6dc-40dc-11e0-9a37-00144feabdc0.html