Why go to Mongolia when India and Australia are among
the top 8 countries with huge reserves to be extracted? And setting up
mining facilities in Mongolia is so difficult and infrastructure and
transportation so expensive.
China and Russia together controls
more than 56 million metric tons of all known reserves of rare earth, so
how significant is their position in this sector is left to the
imagination. Moreover, China holds more than 80% of all global refining
facilities of rare earth elements as well. Even the USA needs China's
facilities to refine their ores.
This move by China will cause
the price of rare earth elements to shoot up, after being dampened over
the years by the manipulation of the USA and the West. Everything that
depends on rare earth is going to be more expensive. USA is reported to
be making a US$300 million funding assist for Lynas of Australia, hoping
to alleviate the crisis.
Problem is where is Lynas going to
process the raw minerals now that no country, even Malaysia, wants to
have processing facilites that causes health related issues. How long is
it going to take for Australia and other countries to set up more
refining facilities and can the world - USA, EU, Japan and South Korea
high tech industries in particular - afford to wait for supplies to come
on line to cover the shortage due to restrictions by China?
Anonymous