The dispute is one of several between Beijing and the EU, US, and Japan, but is the first case to be jointly filed at the WTO by the three economic powers, an EU official confirmed.
While some critics claim that the move will result in very little in the form of forcing China to alter its export system, others feel that it presents a unique opportunity
for both exploration and rare earth element (REE) production companies moving forward.
Rare Earth Investing News sat down with three different REE company executives recently in the hope of gauging just what the feel in the market is in relation to the WTO's investigation.
REIN spoke with David Barwick, Chairman of Orion Metals Ltd.
), an REE exploration company with four project focuses in Australia, and Mark Saxon, President and CEO of Tasman Metals Ltd.
), a Canadian mineral exploration and development company focused on strategic metals in the European region.
Also included in the discussion was Anne Hite, Director of Investor Relations at Rare Element Resources
), a company with a 100 percent interest in the Bear Lodge Property in the US, which contains one of the largest disseminated REE deposits in North America.
REIN: How does your company feel the current dispute between the WTO and China will affect the REE market moving forward in relation to export quotas?
There may be a short-term effect in respect to raising funds for further exploration of REE projects. I do believe that because the demand for REE will remain, it will be a short-term problem.
After the price spike and supply disruptions of 2011, consumers of REEs remain concerned about both access to material and price uncertainty, and are therefore acting to reduce their dependence on these metals. If successful, the WTO action will provide more certainty to consumers, and we are likely to see significantly expanded volumes of REEs being consumed.
Rare Element Resources generally doesn't comment on politics, but suffice it to say that the situation does bring focus on the REE market to the world stage and put into context the importance of these metals.
Additionally, some of the experts in this area have been saying that China may end up being an importer of REEs using all of their own production, and then some. If this were to be the case, sources outside of China may very well end up being the only sources of rare earths for the market.