02. October 2020 | 11:14 CET
Airbus, Boeing, Defense Metals: US government sets course
Acting US President Donald Trump has been a polarizing figure since the beginning of his political career. While he tries to speak from the heart to one part of the population, he drives his opponents crazy with rhetorical games. Although Trump ends wars started by his predecessors and avoids new military conflicts, the global reputation of the US government is currently at rock bottom. Meanwhile, Trump is gaining new fans on social media on the Canadian side. Acting Canadian Prime Minister, Justin Trudeau, has to put up with the accusation that Trump is doing more for the country's economic success. The reason for this statement is the construction of a USD 22 billion railway line from the Canadian province of Alberta to the US state of Alaska. But there is another sector that benefits from Trump.
time to read: 2 minutes by Mario Hose
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Mario Hose
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Alaska to Alberta - A2A
US President Trump has announced that he will grant presidential approval for the A2A rail project. The new railway line will be built from Fort McMurray, through the Northwest Territories and the Yukon, to Delta Junction in Alaska. In Alaska, the new line will then connect to existing rail lines and continue to ports near Anchorage. The line is 2,570 km long and will move goods such as oil, potash, and ore as well as general cargo and even possibly carry passengers in the future.
Further access to the world market
The new route can be used for imports and exports for the world market and represents a further diversification of transport routes. Trade usually works in both directions, thus enriching the people along the way. The project will create more than 18,000 estimated jobs in Canada and will contribute up to USD 60 billion to Canada's Gross Domestic Product (GDP) by 2040.
Trump secures the supply chain
The US President on Wednesday adopted another far-reaching step. In the context of commodity hedging, the North American mining industry is to be promoted, thereby reducing its increasing dependence on China. A decree in connection with the Defense Production Act (DPA) will make it possible to finance mineral processing to protect national security. This step is intended to remove obstacles and delays in the granting of permits.
A boom in demand expected
The research and consulting company Adamas Intelligence recently predicted to expect an "astronomical" growth in demand for individual rare earth minerals in the 2030s. The experts explain their assessment, not to expect the supply side of the industry to keep pace with the growing demand.
Focus on magnetic minerals
The demand for rare magnetic earth will increase in the coming years and will become a challenge. Companies such as Airbus and Boeing, as well as manufacturers of electric cars, are particularly interested in rare earth such as neodymium, praseodymium, dysprosium, and terbium in connection with the operation of electric motors.
British Columbia offers access
The Canadian company Defense Metals Corp. focuses on the exploration and development of a rare earth project in the province of British Columbia. The company has already demonstrated discoveries on the Wicheeda project and is working with SGS Canada on this project. The Wicheeda project has reported Indicated Mineral Resources of 4,890,000 tonnes at an average grade of 3.02% LREE (Light Rare Earth Elements) and Inferred Mineral Resources of 12,100,000 tonnes at an average grade of 2.90% LREE.
Tests confirm potential
Commenting on the recent tests at SGS's metallurgical plant, Craig Taylor, CEO of Defense Metals, said: "The success of the flotation pilot and 1,200 kilograms of high-grade REE concentrate produced places Defense Metals and the Wicheeda REE deposit among rare company and opens the door to future hydrometallurgical pilot trials at SGS, with the ultimate goal of producing a Nd-Pr oxide product stream." The Wicheeda project is located 80 km northeast of the city of Prince George and covers 1,708 hectares.
