For those who have not read the article by Amanda Ellis "Vote for a brighter future" i advise you strongly to read it.
My feet are planted on solid ground. Some interesting points of the article are:
- Greenland Minerals projects general manager Dr John Mair saidthe Danes’ surrender of all mineral rights presented an opportunity for Greenland to build a future based on natural resource development - “Greenland has shown a huge willingness to move towards a mining-based economy,” Mair said. - Mining would enable the nation to use royalties to fund greater independence and fuel growth of an economy now reliant on fishing and other small internal industries - The Kvanefjeld deposit contains an inferred resource of 100,960 tonnes of yellowcake, in addition to an inferred resource of 2.59 million tonnes of rare earth oxides and 2.21Mt villiaumite (sodium fluoride), with scope for substantial increases. - “The Greenlandic parliament has declared in-principle support for the mining of uranium produced as a by-product of other metals projects,” McIllree said - Allowing by-product production will mean that when uranium is found while mining other metals, it too can be mined, rather than be treated and neutralised onsite. - “What we’ve argued is we’re not there to mine or look specifically for uranium. We’ve actually identified a very large deposit of rare earth metals, metals of increasing strategic importance, and within that deposit is a coincidental uranium resource, because it occurs in a broader - Once the junior company makes the step to producer, a relaxation of the ban would enable it to apply for a licence to mine the uranium it finds while mining rare earth elements at the surface and naturally occurring sodium at water table level. uranium province,” McIllree said. - Rare earth oxides represent more than 70% of the economic value of minerals at the site. Uranium follows this at close to 25% and sodium fluoride at 5%. - The size of the global rare earth market in 2008 was estimated at 132,500t with an estimated value of $A1.75 billion, and is forecast to approach 200,000t by 2013. - Rare earths are becoming increasingly valuable as demand grows for products such as hybrid cars, plasma screens and other technology-based consumables. - Consumption is expanding at a rate of 8-13% per year, but world supply is becoming inadequate as demand increases and China restricts exports to supply local industries.
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Please read the rest of the article found on this link: www.resourcestocks.com.au/profiles/archive/2009/January/startDownload.asp?File=Greenland_Minerals_Energy.pdf&Size=322853
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From my research i understand that GGG can mine Rare Earths (70%) solely even if the Uranium mining as a by product is not allowed. We are sitting on a resource JORC compliant (and increasing) where the worlds demand for it is outperforming supply. Thus base on demand and supply factors will mean that prices will have to grow with it.
The world is turning into cleaner energy, carbon credits are around, global warming are scaring people, solar panels demand is picking up, ipods are selling like hot cakes and the world is reverting to different ways moving about through electric cars. These are all products that require Rare Earth elements.
Over time i believe there will be a change of human behaviour, a change of what we use that are environmentally friendlier and cohesive with products that Rare Earths will provide for i.e. Lanthanum for rechargeable batteries and a catalyst to increase efficiencies in oil refining, or Cerium is used in modern catalytic converters and neodymium makes the world’s strongest magnets which are utilised in hybrid cars.
Change is happening, old school thinking is slowly eroding. However perhaps some countries are slower than the others. Environmental issues will always be a problem, however with improved sustainability studies and environmental replantation after mining etc there are means and ways to get through every problem for there are always solutions or alternatives.
Uranium is the energy of the future; Rare Earths are the resource element that be of high demand in the future. The economics are good, politics are a headache but i don't believe in the long run can never stand the tide of universal change.
I hold, prices now are irrelevant. Have to go long term with this one. Along with stocks like CNX (UCG), another stock that will ride the new wave of change, and of the future… Just my thoughts…
All the best to all holders
LM
GGG Price at posting:
43.5¢ Sentiment: Hold Disclosure: Held
(20min delay)