The London Commodity Markets rare earths review collects news from around the world related to the rare earth elements industry.

1. LCM Rare Earths
News Review
March 2013
The LCM Rare Earths News Review is a monthly
report compiled for London Commodity Markets to
provide a snapshot of the state of the global rare
earths industry.
London Commodity Markets
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3/15/2013

2. New boss signals new ‘era’ for Lynas
as non-Chinese rare earths supplier
Australian rare earths mining company Lynas Corporation Ltd
recently announced that its current CEO, Nick Curtis, will be
replaced by the end of March.
Eric Noyrez will take over the rare earths giant from CEO Nick
Curtis, the company said in a statement.
Lynas said that the replacement was planned and reflects the
company’s shift from development to production.
Sydney-based Lynas, the second-best performer on Australia’s
benchmark stock index last year, is set to become the first new
source of supply outside China in at least two decades with the start up this year of the A$535 million Mt. Weld project, the
world’s richest deposit of rare earths according to Lynas.
Curtis will remain on the Board as non-executive Chairman and in that capacity will continue to focus on strategy development
and remain integrally involved in the development and implementation of Lynas’ Shared Value program.
He will also continue to represent Lynas at the World Economic Forum and Co-Chair the WEF’s Global Growth Companies
group, the company said.
The Lynas board also said that Liam Forde be appointed Deputy Chairman. Forde has been a Director of Lynas since 2007.
“Nick has been the inspirational force driving Lynas for the past 12 years,” Eric Noyrez said.
“It was his experience in China that provided the pioneering vision to see the potential of the rich Mount Weld deposit, and it
was his foresight and resilience that has ensured Lynas is now well capitalised and entering a new era as the first significant
non-Chinese supplier of rare earths to original equipment manufacturers.”
Nick Curtis said: “Achieving our first rare earths production last week is a significant transformational milestone, and a fitting
time for us to allow Eric to take over all executive responsibility.”
The announcement came just days after Lynas revealed that its controversial Malaysia had produced its first rare earths
products for customers.
Photo © Nick Curtis Photo Michael Armstrong-Lynas Corp
Lynas's Nick Curtis builds fortune
with bet on Rare Earths
Nick Curtis made a A$5 million ($5 million) contrarian bet in 2002 to develop an Australian rare earth mine, aiming to challenge
China’s control of global supply of the metals. His company, Lynas Corp., now has a market value of $3.5 billion.
Curtis, 53, saw his gamble start to pay off last year when China slashed rare earth exports, causing prices to surge as much as
13-fold and setting off a scramble to lock in alternative sources of the metals used in missile guidance systems, iPods and hybrid
cars.
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3. With China controlling more than 95 per cent of the world’s rare earths, Lynas’s stock jumped almost fourfold since June 30 as
investors sought more secure future supply.
“The dominance of China in rare earths was unsustainable,” Curtis, chief executive officer of Lynas, said in an interview. “I’d
pictured the need for order in the industry, that these were important metals that would ultimately need a stable, secure non-
China supply chain,” Curtis said.
Mining Priority
China made rare earths production a priority in the early 1990s under Deng Xiaoping, dominating the market, pushing down
prices and rendering mines elsewhere uneconomical. The government introduced its export quota system in 1999.
Rare earth shortages followed the government’s directive in 2006 to create larger domestic companies while curbing output
and exports.
About 50 per cent of global rare earth demand comes from customers outside China and they are looking elsewhere for
supplies, Deutsche Bank AG said in a report last year. Global demand for rare earths is forecast to rise to $11.2 billion by 2014
from $7.8 billion last year, Lynas said in a presentation last month.
“Nick’s always been an entrepreneur,” said Warwick Grigor, an equity analyst at BGF Equity Pty Ltd. in Sydney, who’s tracked
the “exceptional” Mt. Weld deposit since the mid-1980s. “He saw an opportunity there. It’s probably an understanding of the
market he’s picked up from dealing with the Chinese.”
Full story and source: By Elisabeth Behrmann for Bloomberg.com
Bill aimed at securing rare earth
supply reintroduced to US Congress
US Representative Hank Johnson has reintroduced the Resource Assessment of Rare Earths (RARE) Act of 2013 to Congress.
It is a bill aimed at securing rare earth supplies and reducing China’s monopoly on the market, has been reintroduced to.
Critical to high-tech clean-energy and defence manufacturing, rare earth elements (REEs) are strategic minerals used in the
production of cutting-edge technologies such as wind turbines, advanced batteries, powerful magnets, and military radar
systems.
China accounts for 97% of global rare earth element production and has demonstrated a willingness to restrict REE exports. The
Chinese monopoly is a strategic vulnerability for the United States that could undermine national security and competitiveness
in the defence and clean-energy sectors.
“Like President Obama, I am committed to a future powered by clean energy,” said Johnson. “Without secure access to rare
earth elements, we will be unable to lead the world in clean-tech. The RARE Act will dramatically advance our ability to access
rare earths worldwide.”
The USGS global assessment, conducted with geological surveys of partner nations around the world, will identify and quantify
individual rare earth elements in known deposits, improve understanding of the distribution and formation of rare earth
element deposits, assess likely undiscovered deposits worldwide, analyse the state of the complete rare earths supply chain
from mining to manufacturing, and recommend further research and steps to improve our understanding and ensure access.
Rep. Markey (D-Mass.), Ranking Member on the House Natural Resources Committee, said that if America is to keep pace with
China and Germany in clean energy technology, access to rare earth elements will be crucial.
“From wind turbines to solar panels to energy efficient light bulbs, America needs a reliable supply of rare earth materials to
manufacture our clean energy future,” said Markey. “Unfortunately, we have gone from self-reliance in the production of our
rare earth materials to 100 per cent reliance on imports, mostly from China. This bill will help reverse that troubling trend and
give industry the tools and information to get America back in the rare earths business.”
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4. In a letter to Rep. Johnson, U.S. Magnetic Materials Association President Ed Richardson wrote: “This bill represents an
important piece of a much-needed comprehensive approach to understanding current and future domestic and international
supply of and demand for rare earth elements.”
Source: HankJohnson.House.Gov
Phillipines set for rare earth plant
If things go according to plans, the Philippines may start producing rare earths by 2014.
Sumitomo Metal Mining Co. Ltd (SMM) is building a scandium recovery plant in Palawan later this year, and expects the pilot
facility to operate in 2014.
“For some time, SMM has been working to develop a scandium recovery method at its Niihama Research Laboratories in Ehime
Prefecture,” the company noted on its website.
“This effort has now led to the attainment of technology enabling efficient recovery of scandium from the nickel-cobalt mixed
sulfide production process,” SMM said.
Source: GMA NEWS Online
US miner’s loss bigger than expected
Molycorp Inc. (MCP), owner of the largest rare-earth deposit outside China, reported a wider-than-expected loss after the
company missed a production target and prices for the commodities declined.
The fourth-quarter net loss was $359.6 million, or $2.91 a share, the Greenwood Village, Colorado-based company said
yesterday in a statement after the close of trading. The company reported net income of $26.6 million or 26 cents a year earlier.
Full story and source: By Sonja Elmquist for Bloomberg.com
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