Thursday, October 11, 2012

Rare Earths Could Be Pawn in Island Spat... Again

by Heiko Ihle
EuroPacific Capital

We’ve written before about rare earth elements (REEs): the futuristic sounding group of 17 minerals with unpronounceable names that play a critical role in everything from hybrid cars to flat screen TVs. Of course, “rare” is something of a misnomer, as the minerals that make up the group are not all that rare. They are, however, difficult to mine in profitable concentrations.
As of now, China controls over 90 percent of the world’s rare earth mining concerns. In the past, this near monopoly has allowed them to exert a significant influence over both price and supply. In 2010 and 2011, China used its position to send prices on a roller coaster ride, causing some individual minerals to quadruple in price. In 2011, prices for some elements doubled again, hitting record highs.
Continue Reading at EuroPac.net…

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