A Quick Note On Recent News From China

by Jack Lifton on August 17, 2010 · 3 comments

in China, News Analysis, Rare Earths

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It has now been reported in the Wall Street Journal that China is in the process of creating a unform governmental policy to export chemical engineering processing technologies so that the non-Chinese production of vital raw materials can be done economically by enabling foreign (to China) owned and located mining ventures to move up the supply and value chains far enough so that they can be profitable.

The Chinese rare earth processing industry, for example, is working with several foreign rare earth juniors to make their business models economical. In return the Chinese processors will get access to rare earth metals produced overseas, and hopes that once foreign local demands are satisfied there will be ample surplus material to be sold into the Chinese home market as needed.

The production of the heavy rare earths, it is hoped in China, will be enabled by chemical engineering technology exports of this type.

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1 Tek August 18, 2010 at 11:03 am

Of course we now know that Great Western Mineral Group is a primary suitor in this new Chinese endeavor. Assisting the development of other non chinese resources, in addition to REEs, may well be China’s economic development plan for the next 10 years. China’s internal consumption of domestic manufacturing will mandate expanding raw materials discoveries and imports, while giving them the inside track for negotiating longterm supply contracts. What GWG is doing, will likely become the Chinese model for international engineering cooperation and economics.

2 gobucks August 18, 2010 at 12:22 pm

My Dad was a chemical engineer. He’s probably rolling over in his grave right now at the news that we need to import such expertise.

Sad day.

3 fran August 18, 2010 at 3:22 pm

MR. LIFTON–

thank you for this response to my first querry [first of two] made in your most recent article. in net, OECD mining competence in the area of metals processes from raw ores is less than stellar when it comes to REEs. we may be living on past laurels when it comes to other BAU metals? it’s the newness challenge of REEs which creates the QUANDRY?

it makes one wonder how deep and wide the technical ABYSS might be?

and here i thought we only had the financial ABYSS of national bankruptcy to face.

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