molycorp announces output and revenue miss, page-13

Starting to unfold:

"While prices of REMs have dropped since their earlier peak, a bullish outlook remains. KPMG believes that 75 percent of companies will close in the next 24 months due to current low prices. If such a major collapse of the industry in fact occurs, the industry will consolidate into the hands of a few."

"Despite countries such as the U.S. and Australia pushing investments forward in REM production, their viability as profit-making enterprises is dubious given the high costs of labor and the difficulties in meeting environmentally-friendly regulations. Jack Lifton, founder of Technology Metals Research, told Reuters in 2011 that he believes only 4 percent of ventures will prove profitable."

The Next Oil?: Rare Earth Metals

http://proedgewire.com/rare-earth-press/the-next-oil-rare-earth-metals/