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As Green Technology Solutions, Inc (GTS) and other mining developers work to claim valuable rare earth deposits around the globe, Japanese researchers last week reported what could be the largest find in history.
“There are legitimate concerns that demand will soon outstrip supply, but we believe we’re close to providing a more economically viable solution by developing rare earth mines in Mongolia.”
The excitement generated by the Japanese find is a reflection of the explosive demand for rare earth elements around the world, said GTS President and CEO John Shearer.
Currently, China dominates global production, providing more than 95% of the world’s supply. New mining restrictions and export cuts implemented by the Asian superpower have sparked fears of rare earth supply shortages in Japan, South Korea, the U.S. and other large consumers of the metals.
“This huge discovery was made because shrinking exports from China in the face of growing demand has caused rare earth prices to skyrocket,” Shearer said. “There are legitimate concerns that demand will soon outstrip supply, but we believe we’re close to providing a more economically viable solution by developing rare earth mines in Mongolia.”
Details of the discovery were published in the online version of the British journal, Nature Geoscience. Geologists led by Yasuhiro Kato, an associate professor of earth science at the University of Tokyo, found heavy concentrations of rare earth minerals in sea mud at 78 locations on the floor of the Pacific. The researchers estimate the ocean-floor reserves total 80 to 100 billion metric tons of rare earth deposits, enough to satisfy current global annual consumption for 10,000 years.
Retrieving those rare elements, however, may not be practical—or even possible. The minerals were found at depths of 3,500-6,000 meters below the surface of the ocean, far from any shore. Since the deposits are located in international waters, it’s not clear who would own the rights to them, even if the technology needed to mine rare earths from the murky depths existed. Many analysts doubt the minerals’ recoverability will be feasible any time soon.
“The importance of this find shouldn’t be overestimated,” said Daniel Briesemann, natural resources expert at Commerzbank, in an interview with the German newspaper Deutsche Welle. “Rare earth elements have never been obtained from these depths before. Entirely new technologies will need to be developed for the extraction.”
Last month, GTS signed a PPA with Mongolian mining and trading company ArErkhes, LLC, to extract rare earths from three mining sites in that developing nation. GTS formed a joint venture with Rare Earth Exporters of Mongolia earlier this year to develop new sources of the valuable resources outside of China for export to the U.S. and its economic allies.
© Business Wire
14 Comments
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motytrah
It's not that the US and Australia don't have the deposits. They do. But China is substantially cheaper in terms of labor, lack of standards (safety, environmental, etc.) It's a fine needle China has to thread. They need to juice the market just enough to make sure raising labor costs in china are offset by materials export costs. But if the cost of the resources gets too high the west will start up mines and use domestics sources.
Smorkian
I read an article after this announcement last week that this find is not in any way economically viable due to the low concentrations (I realize the author says high concentrations but the other author disagreed with that assessment). I'll have to see if I can find it.
Zenny11
From the articles I read the concentrations are high but mining viability will depend on cost as those deposits are on the seabed deep down.
But it also looked like many companies are eager to do just that. (That was from a BBC report).
Molenir
US is already doing it.
Jeff Huffman
Am I the only one who read this that found it confusing that the article begins the discussion with potential supplies in Mongolia . . .
There are legitimate concerns that demand will soon outstrip supply, but we believe we're close to providing a more economically viable solution by developing rare earth mines in Mongolia.
. . . and then the article jumps to possible seabed sources?
Geologists led by Yasuhiro Kato, an associate professor of earth science at the University of Tokyo, found heavy concentrations of rare earth minerals in sea mud at 78 locations on the floor of the Pacific.
Whoever Business Wire may be, they're worse than Kyodo. EDITOR!
nath
This is one of those none stories that scientists / companies release for funding or stock price reasons.. A bone for shareholders perhaps. Those RREs may as well be on the moon.
timeon
Peter, you confuse press releases with peer reviewed journals. Nature Geoscience is a top journal with strict reviewing policies, and publishes quality work. Prof. Kato has no intention to commercialize this finding, and I don't really know how he can do it. he found it, he published it. the media hype is another thing, but there is no base for insulting fine research published in a top journal
nath
This article is very confusing and contradictory with initial reports of the rare earth found on the sea floor. I read somewhere else (forget the location) that these rare earths, once extracted and collected, would be much easier to process and have higher concentrations of viable final product in them. Time to do some tests!
presto345
To begin with the title of this article is confusing. What comes next seems a compilation of random paragraphs concerning rare earth. Pacific floor? Mongolia? Let someone rewrite this article. please.
PapaEshu
Ah! So these "rare earth" materials can be used in the production of intterositers and multiple pre incabulators where "rare earth minerals" can be used in the base plate of pre-framulated amulit or in the free-murlating sinusoidal re-prenulating dingle arm and side-fumbling can be kept infarculcated. Wow.. Great.. What are rare earth materials anyway and why doesnt the article define it's terms for regular "interested" readers? Or is this article only for you "rare earth boffins"? Gomenn ne.
smithinjapan
"The minerals were found at depths of 3,500-6,000 meters below the surface of the ocean, far from any shore. Since the deposits are located in international waters, it’s not clear who would own the rights to them, even if the technology needed to mine rare earths from the murky depths existed."
A couple of quick questions... ummm... if they discoveries were made 'in Mongolia', how is it in International waters with no jurisdiction? Seriously... if it IS in international waters, and proven possible to get, prepare for a whole new slough of 'this is out territory' disputes. Japan will claim it's its waters, as will China without a doubt, and probably NK and maybe even SK.
ihavegreatlegs
Papa, you are so funny. You are rare on this earth and in JT!
globalwatcher
If you are interested in a LONG TERM investment on Green Technology Solution, it is traded on Over-the -Counter under GTSO. They are not paying any dividents. It is currently being traded at $0;70/share. FYI
globalwatcher
And I may add FYI that US scientists have just discovered a new technology converting natural gas into clean gas for cars.
The natural gas is easily found everwhere in US, and this product is on the way to the market.
The natural gas supply should last another 1000 yrs. for US consumers. If that's the case, a Hybrid car that needs a rare earth battery may not be the only Green Car option. The name of company is CHESAPEKE ENERGY traded in NY Stock Exchange. We may be able to say good bye to the Middle Eastern Countries.......hope so.