ree price bubble - absolutely not!

Being a long term and large shareholder I do not succumb to the theory there is a REE price bubble. In fact, in my opinion, China is doing the world a very big favour by raising the prices to where they are today.

Having travelled many times on business to China, I come away on most occasions with the view how smart and strategic they are. With this in mind I've come to the conclusion there are two main reasons for why the prices are where they are today and why they will continue to rise for some years to come.

Firstly and obviously we know China are encouraging foreign corportions to set up shop there and also take advantage of the low domestic FOB REE prices being offered.
This encourages employment and more importantly a skills transfer for the Chinese people. China wants to grow its economy by green technology and to do this it needs the skills. Smart but obvious!

Secondly, within the next 15 years its been reported (Nick Curtis from memory) that China will be a net importer of REE. So by this time China has 'encouraged' the world by having the REE prices so high for it to go out and find new sources of rare earths. Being a net importer it's strategic for it to have continued supplies oF REE for its now growing mature green industries.
Its been reported by the US gov't recently that from discovery to production for the REE industry its generally around 10 years. Fits perfectly for China's long term planning.
So in 10 to 15 years time prices might come down as supply meets demand but I expect Lynas to be in a position producing 50,000 tonnes plus annually (production capacity coming from large profits being generated) and may well be the price maker.

My thoughts for what they are worth and always DYOR.