Strategic Metal Report

Theories on Rare Earth Diplomacy

I was surprised to see rare earth splashed across the front page of the China Daily when I picked up the paper this morning, with the headline claiming that “Rare earths ‘will not be (a) bargaining instrument’”. A reference to statements made yesterday by Zhu Hongren, spokesman for the Ministry of Industry and Information Technology. Most readers of the daily may have been confused about what rare earths are and why they were Friday’s headline story, while those in the know were left scratching their heads, trying to figure out the Rubik’s cube of recent statements by Chinese officials regarding rare earth.

There have been countless attempts by media to try to make sense of China’s export embargo against Japan and consequent statements by various government officials and ‘unnamed sources’, as well as the current availability of export quotas. Well, now it’s my turn:

Coverage from Minor Metals & Rare Earths 2010 - Xiamen, China [Part II: Minor Metals]

A wide range of reports were presented at Metal Pages’ Minor Metals & Rare Earths conference this year, which not only covered a variety of metals, but also included perspectives from privately held and publicly traded producers, exploration and development companies, as well as research organizations.

Two presentations specifically examined the current indium market. Growing use in liquid crystal display (LCD) and cadmium-indium-gallium-selenide (CIGS) photovoltaic applications have attracted much attention to the indium market over the past five years. Feng Yuncong, from the Antaike research group, however, expressed doubt about any large indium price increases in the near future due to the high number of large-scale producers that are capable of extracting at high recovery rates. Claire Mikolajczak, Director of Metals and Chemicals at Indium Corp., discussed the effect of the flat panel display (FPD) industry on indium demand. Currently accounting for about 56 percent of indium demand, according to Ms. Mikolajczak, the FPD market is the primary driver of indium prices. Moreover, although the LCD growth rate is decreasing, it still remains strong and demand for indium continues to be supported by growth in the photovoltaic cell (PV), CIGS and light-emitting diode (LED) industries. Consequently, some estimates have world demand for indium nearly doubling over the next decade. However, despite strong end-use growth estimates, most in the industry believe production can keep pace over the long-term, leaving only temporary periods of price volatility

Coverage from Minor Metals & Rare Earths 2010 - Xiamen, China [Part I: Rare Earths]

Also posted on RareMetalBlog.com

Having just arrived back in Beijing to find that winter has arrived early, I should thank Metal Pages Ltd. for holding their annual Minor Metals and Rare Earths conference in Xiamen this year. Located on the Taiwan Straight, Xiamen is known for its temperate climate as well as for being the heart of China’s tungsten industry. But most of the attention at this year’s conference was – not surprisingly – focused on rare earths. Held between Oct. 18th and 21st, the conference included rare earth producers, end-users, traders and representatives from relevant government departments.

China's Minor Metals Industry Needs to Assess Effect of a Stronger Currency - Interview with SMI Ltd.

Terence Bell, President of Canada-based Strategic Metal Investments Ltd., spoke with Interfax about what an appreciating Renminbi will mean for the Chinese minor metals industry, and whether consolidation is the way forward.

Shanghai. October 14. INTERFAX-CHINA – As the Renminbi (RMB) has witnessed a rise in its value recently, Chinese minor metals producers and end-users need to start considering what a strong Renminbi will mean for their industry, Terence Bell, President of minor metals trading and consulting company Strategic Metal Investments Ltd., told Interfax.

For the full article, please visit:
http://www.interfax.cn/news/15400

 

Scarcity of Minerals: A Strategic Security Issue

Will states use access to or possession of minerals as a strategic resource? Will relations between states that have access to minerals and those that don’t change due to scarcity? Are future wars about minerals rather than oil, territory or water?

These are the questions posed in a report produced last year by the Hague Centre for Strategic Studies, which examines mineral scarcity and the potential impacts on resource markets and security issues. The report, entitled Scarcity of Minerals: A Strategic Security Issue, uses empirical data and national policies to assess the security and geopolitical impact of mineral scarcity. In its 145 page entirety, the report is a thorough read, providing insightful perspectives on how government policies and technological development are shaping global supply and demand for strategic minerals.