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Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


John Jeffrey, CEO, Saturn Oil & Gas Inc.

John Jeffrey
CEO | Saturn Oil & Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary, AB (CAN)

jjeffrey@saturnoil.com

+1-587-392-7900

Saturn Oil & Gas CEO John Jeffrey on the future of the company and ESG


20. December 2019 | 11:11 CET

Lynas Corporation, Mkango, Ucore Rare Metals - who will benefit most from the U.S. Army?

  • Rare Earth Elements
Photo credits: pixabay.com

The market for rare earth elements is dominated by the People's Republic of China. Worldwide production of rare earths in 2018 was around 170,000 tonnes, of which 120,000 tonnes came from China. This shows how much the global industries have become dependent on a good relationship with China. In 2010, following a diplomatic dispute with Japan, the People's Republic restricted exports, which caused prices for niche metals to skyrocket.

time to read: 2 minutes by Mario Hose


 

Author

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.

About the author


Political Cooperation with China

Rare earths are important raw materials for mobility with electric drive motors, the generation of wind energy and modern communication with smartphones. Of course, the use of rare earths can be listed by a multitude of other applications, but the current mainstream topics make it clear how much the success of these projects depends on political cooperation with China. The supplier issue is particularly critical in connection with the national security.

U.S. Army has financial leeway

The trade dispute between China and the USA is about many issues, but also about rare earths. With a military budget of over USD 600 billion per year, the US understandably has a problem with remaining dependent on the emerging China. In this context, it was recently announced that the US Department of Defense is looking for ways to secure procurement in North America. Given annual military spending, building a pilot plant costing up to USD 20 million or completing a plant costing over USD 100 million is certainly not a problem. The U.S. Army wide financial latitude for national defense.

Development between the major powers

This development between the two major powers will also be exciting for companies that deal with rare earths on a daily basis. Lynas Corporation from Australia is one of the already established companies in the scene. The company currently has a market capitalization of just over EUR 1 billion. Ucore Rare Metals is a small player with a market capitalization of around EUR 36 million. The Canadian company with projects in Alaska may benefit from an initiative of the U.S. Army for obvious reasons.

Rare earths in Malawi

The developments around the Canadian company Mkango will be very interesting in the coming days and weeks. The company has several rare earth projects in Malawi, one of which is called Songwe Hill, and a bankable feasibility study is currently being conducted for this project in partnership with Talaxis. Talaxis will bear the cost of this feasibility study and subsequently, depending on the outcome of the study, the project will be brought into production.

Partnership with potential

On December 9, 2019, Talaxis' owner holding company, Noble Group Holdings Limited, signed a Memorandum of Understanding with Chinalco Guangxi Nonferrous Rare Earth Development Co, Ltd for a potential supply of 42,000 tons of rare earths. This volume corresponds to approximately 25% of the world's annual production in 2018. The press release also explicitly mentioned Mkango's Songwe Hill Project. As of September 30, 2019, Mkango had over USD 10 million in cash on its balance sheet and its market capitalization is currently EUR 12 million.


Author

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.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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  • Rare Earth Elements

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  • Rare Earth Elements

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  • Rare Earth Elements

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