By Kari Williamson
It is estimated that China controls 95% of global rare earth elements mine production, milling and processing capacity. China clearly recognises that it will need more rare earth elements to feed its domestic industries, and the nation regards these elements as a strategically important resource.
“We are already seeing signs that China is going to continue to limit exports of REEs and direct its REE supply to benefit domestic industries instead,” says investment expert and author of the REE Stock Investing Made Easy report, Elliott Gue.
The special report concludes that the US and most other nations in the developed world are dangerously reliant on China for their rare earth elements supply, and are greatly unprepared to handle supply shortages.
Supply/demand balance will remain tight in the foreseeable future and the rest of the world will need to develop alternative supplies to make up for falling Chinese exports.
Meanwhile, Chinese domestic demand for rare earths is projected to reach around 130,000 metric tonnes in 2015 with the rest of the world consuming about 95,000.
“Given the strong expected growth in demand for REEs and China’s reluctance to export its own supply, the clear question is where the new supply of REEs will come from,” Gue adds.
There are only two rare earth stocks outside China with the potential to begin significant production by the end of 2012. But, according to the report, only one of these companies has developed a new technology that allows it to cut milling and processing costs significantly. The report author believes that this company’s ability to participate in all facets of rare earth elements production, offers potential investors the greatest capital appreciation potential of the two companies.
“We felt that most investors in the general public are not well aware of the critical state that the REE market is in. We created the REE Stock Investing Made Easy report because we wanted to provide individual investors with a comprehensive guide that will explain the REE market in a non-technical, but comprehensive manner, as well as giving investors clear and actionable advice on how to profit from emerging market trends,” Gue concludes.
