Stay Ahead of the Curve

TMR provides market intelligence, commentary and analysis on critical and strategic materials such as the rare earths, lithium, tellurium, gallium and other technology metals. We help companies, agencies and individuals do their homework on the challenges and opportunities associated with these materials.

On December 27, 2011 the Chinese Ministry of Commerce announced the first round of allocations of rare-earth export quotas for 2012, to individual companies operating in China. The total export quotas allocated during this first round come to 24,904 t of rare earths. Before we get into more specifics with the numbers, it is important to note that this announcement was unusual for three reasons:

  1. The Ministry issued separate quota allocations for light (LRE) and medium / heavy (M/HRE) rare earth products, and not just for rare earths as a whole. We’ve been anticipating this change for some time, based on industry chatter from within China, but 2012 marks the first time, to my knowledge, that these separate allocations have been rolled out;
  2. Also for the first time (again, to my knowledge), the Ministry clearly telegraphed the intended TOTAL export quota for the entire year, prior to making the usual follow up allocation announcement next summer; and
  3. The Ministry separated individual companies into two groups – the first group received confirmed quota allocations, while the second received only provisional allocations. Companies were placed into one of these groups based on their progress towards implementing new pollution control regulations, with the latter group only getting their allocated quotas if they meet the various requirements by July 2012. Companies who fail to meet the new requirements, will have their quotas re-allocated to other companies.

In the announcement from the Ministry, it was stated that the first round of quota allocations (totaling 24,904 t) will represent 80% of the quota allocations for 2012, which indicates that the total for the coming year will be 31,130 t of rare earths, slightly higher than last year. Here’s how the two groups of allocations break down:
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Earlier today I got word that the US Department of Energy (DOE) has released an update to its Critical Materials Strategy, which was first published as a report in December 2011 2010. This document has helped to shape a fair amount of the debate on rare earths in particular, and critical & strategic materials in general, in the past 12 months.

You can download a copy of the report from here.

I’m still digesting the contents of the report; I can tell you that the DOE still considers the five rare earths dysprosium, neodymium, terbium, europium and yttrium to be critical in the short and medium term; indium is judged to now be near-critical in the near term, compared to being categorized as critical in the 2010 report.

New sections include one that covers the use of rare earths in fluid cracking catalysts, and how the petrochemical refining industry reacted to escalating prices of materials in 2011.

More to follow once we’ve had a chance to read through the report more thoroughly.

Update (01/17/12): the URLs for the report have been updated, since the original links no longer work.

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Why Manganese-Gallium Is Not The Next Neodymium-Iron-Boron

by Gareth Hatch December 20, 2011

I’ve received a number of emails today from people wanting to hear my thoughts on a news release from Northeastern University published earlier today, pertaining to a new magnetic material that researchers at the University have apparently discovered. According to the announcement, the “super-strong magnetic material” may “revolutionize the production of magnets found in computers, [...]

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December 2011 Updates To The TMR Advanced Rare-Earth Projects Index

by Gareth Hatch December 17, 2011

I have just updated the list of projects on the TMR Advanced Rare-Earth Projects Index, to reflect a new rare-earth mineral resource estimate that was announced recently. I also made some other updates. The specifics: Rare Earth Metals Inc. (TSX.V:RA, OTCQX:RAREF) announced an NI-43-101-compliant mineral-resource estimate for its Two Tom project in Canada, on December 13, 2011. [...]

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The Rare Earth Mining Sector In 2015 And Beyond

by Jack Lifton December 5, 2011

Last week I received some criticism via email, from executives at some of the companies that I did NOT mention in my most recently published TMR article, “Decoupling The Rare-Earth Junior-Mining Market From Emphasis On Molycorp And Lynas.” Each apparently assumed that absence of evidence was evidence of absence. Let me try to set the [...]

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Decoupling The Rare-Earth Junior-Mining Market From Emphasis On Molycorp And Lynas

by Jack Lifton November 26, 2011

There is not a global “rare-earths market.” There are local, regional, markets for individual rare earths in separated. highly refined forms such as chemicals for manufacturing fluid cracking catalysts, and metals for producing alloys to manufacture rare-earth permanent magnets, or nickel-metal-hydride battery electrodes. Even if your thinking is that the markets are totally globalized, you [...]

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Navigating The Rare Earth Metals Landscape

by Admin November 23, 2011

by Brian Sylvester – The Critical Metals Report – published: Nov 22, 2011 Brian Sylvester: Gareth Hatch, co-founder of Technology Metals Research LLC, gives us the lay of the land in the rare earth sector. Many variables are shaping this developing market, and from calculating global demand to anticipating individual project costs, data makes the [...]

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What Molycorp Has NOT Said About Its Future Rare Earth Production (Until Now)

by Gareth Hatch November 11, 2011

Yesterday I listened to a conference call hosted by Molycorp Inc. (NYSE:MCP), to discuss the company’s Q3 2011 financial performance. The call covered the expected ground, going over the financials and milestones that the company achieved in this last period. No surprises there; Mark Smith, the company’s CEO, pointed out the record revenues that the company earned in [...]

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The NCPA Conference On Rare Earths And National Security

by Gareth Hatch November 5, 2011

On Wednesday of this week, the National Center for Policy Analysis (NCPA) hosted its Rare Earths, Critical Metals, Energy & National Security Conference, close to Capitol Hill in Washington, DC. Very much aimed at the DC crowd, the event was billed as an attempt to “raise awareness of how current public policies lead to dependence on [...]

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October 2011 Updates To The TMR Advanced Rare-Earth Projects Index

by Gareth Hatch October 25, 2011

I have just updated the list of projects on the TMR Advanced Rare-Earth Projects Index, to reflect two new rare-earth mineral resource estimates, which were announced within the past month or so. I also made some other updates. The specifics: Geomega Resources Inc. (TSX.V:GMA) announced an NI-43-101-compliant mineral-resource estimate for its Montviel (Core Zone) project in Quebec, Canada, [...]

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