San Jose, California -- The era of cheap rare earths may be drawing to a close, and Green Technology Solutions, Inc. is working to capitalize on shifting market dynamics for the critical elements. For decades, China has supplied more than 95 percent of the world's rare earth demand, even though the country’s reserves total only one-third of worldwide deposits. Export prices for Chinese rare earths stayed comparatively low due to the emerging superpower’s cheap labor and lack of environmental protection costs. Recent rare earth policy decisions by the Chinese government indicate that the days of cheap rare earth exports may be at an end.
|Foto: ©Michael Andre May-PIXELIO|
Many analysts believe these new policy shifts indicate that China is no longer willing to supply most of the world's rare earth demand. The country’s new caps, tax and regulations have helped cause the average price of rare earth elements in China to double since the end of 2010. Green Technology Solutions is working on both sides of the globe to capitalize on rising prices and demand for the critical materials.
In the U.S., Green Technology Solutions, Inc. (GTSO) signed a letter of intent last month to acquire the Rio Del Monte Mining properties near Salome, Ariz., in hopes of developing the site into a domestic source of rare earth elements. GTSO President and CEO John Shearer personally inspected Rio Del Monte last week; the company is now preparing to send mineral samples from the mining properties to Actlabs in Ontario, Canada, to be analyzed for their rare earth content.
On the other side of the world in Mongolia, GTSO is working with Rare Earth Exporters of Mongolia (REE) to develop new sources of rare earths inside the former Soviet state. The two companies formed a joint venture in March that is currently analyzing the mineral contents of several mining properties in Mongolia to determine where best to begin production. The joint venture plans to utilize the developing nation’s road and rail infrastructure to convey Mongolian rare earth mining products to the international seaport of Vladivostok, Russia, to be shipped to the U.S., Japan and South Korea.
For more information on the joint venture’s transportation strategy, please visit rareearthexporters.com. Quelle: BUSINESS WIRE