What was once the biggest rare earth elements mine within the world will come back to life next year. In 2004 Colorado-based Molycorp closed its rare earth mine in CA. The company could not compete with the low prices offered through Chinese sources. However, China has started to manipulate supplies, which has brought on prices for rare earth metals to rise dramatically.
About the Molycorp Mountain Pass mine
The richest source of rare earth elements within the world is the Mountain Pass, CA mine that is dormant and owned by Molycorp. Molycorp’s Mountain Pass mine closed over environmental concerns and overwhelming competition from China. China now has a monopoly on rare earth metals since Mountain Pass closed. The United States national security and economy is in danger with this. Molycorp has decided to start producing again after getting the right financing and permits. In 2011, the company will produce about 3,000 tons of rare earth metals processed from ore stockpiled before the mine was closed. A production of 20,000 tons is expected in 2012.
What you should learn about the china monopoly
The 2010 global demand for rare earth metals can be measured already. 125,000 tons was the amount. About 97 percent of the world’s rare earth metals production is controlled by China right now. Wind turbines, electric car batteries, electronic gadgets and military technology all use rare earth metals. In 2010, China appeared to be using its rare earths monopoly for geopolitical leverage. High tech manufacturing in the United States, Japan and Europe was disrupted when it cut exports of rare earth metals by more than 70 percent. China reduced taxes for domestic manufacturers. This was for all rare earth metals. Prices for rare earth metals rose 40 percent. Clean-energy technology businesses are moving operations to China to conserve costs.
Jump-starting a green power economic climate
Sumitomo Corp of Japan invested $130 million in Molycorp to guarantee a supply of rare earth metals for seven years. Within 18 months, production is expected by Molycorp to increase to 40,000 tons. The neodymium magnets used in wind turbines are an example of the emerging technology that utilizes rare earth metals in a green energy economy. Within the U.S., you will find currently no businesses that can do this. However, neodymium magnets may be produced within the United States with Molycorp making a partnership with Hitachi in order to use bastnasite ore from Mountain Pass mine. Currently only 10 businesses located in Germany, Japan and China are licensed to make neodymium magnets.
Information from
The Guardian
guardian.co.uk/environment/2010/dec/26/rare-earth-metals-us
MIT Technology Review
technologyreview.com/energy/26980/page2/
Miami Herald
miamiherald.com/2010/12/27/1989540/weaning-ourselves-from-a-china.html
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