why heavy rare earth prices will remain high

Greed and Power – two attributes you often find working together ……

…… nothing like having a vested interest, and the power to protect that vested interest as these two stories would indicate ….

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China blocks Bloomberg site after report on leader

BEIJING (AP) — China blocked access to Bloomberg's website on the mainland after the business and financial news agency published a report Friday detailing the multimillion-dollar assets of relatives of the man set to become the country's next president.

The report says that the extended family of Vice President Xi Jinping holds interests that include investments in companies with total assets of $376 million, an 18 percent indirect stake in a rare-earths company with $1.73 billion in assets

http://finance.yahoo.com/news/china-blocks-bloomberg-report-leader-095112265--finance.html

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China Daily, Govt cracks rare earth cases 2 Aug 2012

A number of operations that were illegally storing and processing up to 1,000 tons of rare earth valued at several hundred million yuan was discovered last week.

The government of Lianping county, Heyuan, Guangdong province, said on Tuesday that it received a tip-off which led to the discovery of two warehouses and a factory in two villages in Zhongxin town illegally storing and processing rare earth.

The Longchuan county government also busted nine outlets illegally mining, processing or trading rare earth in Heyuan city, and seized more than 100 tons of fully or partly processed rare earth products.

The government has approved rare earth mining of 2,000 tons of oxides a year in Guangdong, but actual mining exceeded 40,000 tons due to illegal mining, Shen Shaomei,

Shen said strong overseas demand was causing the illegal mining.

for the full story ...
http://www.chinadaily.com.cn/china/2012-08/02/content_15639289.htm

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We now know what is “really” driving Chinese rare earth policy … (and you thought it was genuine environmental concerns) ……

it a safe bet these people running China will do everything the can to maximize and protect their own investments ….. which means higher heavy rare earth prices are here to stay …