As China severely reduces export quotas, the rest of the world is waking up to the reality of finding new sources for rare earth elements. This is a breakdown of some of the rare earth projects being developed outside of China.
By Michael Montgomery—Exclusive to Rare Earth Investing NewsThe recent developments in the severe reduction of export quotas from China will undoubtedly raise prices for rare earth elements around the globe. Governments around the world have begun to ramp up the exploration and mining projects of rare earths as they see the dire need to equalize the market. The quest for new sources of REEs grows from a need to capitalize on a market in high demand and ever decreasing supply, as well as the need for national security as many high tech defense systems require large amounts of various rare earths. The question on many people minds is: where will the new supply of the materials come from? And will they be economically viable considering the low production costs of materials from China? AustraliaLynas Corporation Ltd. [ASX:LYC] The Mount Weld project in Western Australia has an estimated reserve of 1.8 Mt of rare earth oxides, 19 percent of which is a neodymium reserve base. “A new price high of US$16.56/Kg was reached on 7 June 2010 for the average Mount Weld Rare Earths composition… This news bodes well for Lynas as it owns the richest deposit of Rare Earths in the world at Mt Weld,” reports Jeff Coote, for Proactive Investors. The c ompany also has two plants under construction, a concentration plant in Western Australia, as well as an advanced materials plant in Malaysia. Arafura Resources Limited [ASX:ARU] Arafura's Nolan project in the Northern Territory, Australia is a large rare earth deposit with a similar composition to that of Mount Weld. “Arafura has a resource from the measured to inferred categories of 30.3 million tonnes that contains 850,000 tonnes of rare earths (REO) at a grade of 2.8% REO,” according to Ross Louthean. The company projects a start date to the mine sometime in 2013. CanadaAvalon Rare Metals [TSE:AVL] Avalon's primary operation is the Nechalacho Rare Earth Element Deposit located in the Northwest Territories, Canada. It is an advanced development mining project, 100-percent owned by Avalon, with a higher amount of “heavy rare earths” than the average REE projects. The company also has a project at Thor Lake that is of significant size.