Well, a US government think tank wrote a 200-page report – these...

Well, a US government think tank wrote a 200-page report – these are the top professors, the top scientists, the top economists coming together – anticipating a supply shortfall in certain basic elements. Instead of only two elements that are most critical and strategic, there are now five. They're saying that in the short-term we could experience supply shortages of yttrium, europium, neodymium, terbium and dysprosium.

H: We are watching Lynas carefully because we think it may serve as a bellwether for the whole rare earths sector. Since April 2011, and the delays with receiving that temporary operating license to begin the commencement of refining rare earths, Lynas has had a nice bounce. Last time it did this sort of reversal from a downtrend, it made a very large gain.

TCMR: So, are you saying you're long on Lynas?

JH: Yes I am. But we have to remember that a temporary operating license to refine rare earths under certain conditions doesn't automatically mean the sky's the limit. There may be a response through the sector. Other companies may realize that the rare earths and Lynas can get to a state of eventual cash flow as a pioneering model for the whole rare earth sector.

http://www.resourceinvestor.com/2012/02/16/unstoppable-demand-for-rare-earths-jeb-handwerger?ref=hp