SlideShare a Scribd company logo
1 of 17
Download to read offline
GLOBAL RESOURCES
INVESTMENT FORUM

      What is the future of the Rare Earths sector?
      Gary Billingsley – Executive Chairman, Great Western Minerals




IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY, 25 SEPTEMBER 2012
www.ObjectiveCapitalConferences.com
Rare Earths: What Does The Future Hold?



Objective Capital Conferences
London, UK                             Sept. 25th, 2012



  TSX.V: GWG OTCQX: GWMGF info@gwmg.ca www.gwmg.ca
Cautionary Statement on Forward Looking Statements




                                                     3
Perspective: Global RE Projects August 2012
  441 Projects…269 Companies…37 Countries




   43 Advanced Projects
   40 Companies
   13 Countries




Source: TMR, GWMG




                                                                  4
Perspective: Global Rare Earth Demand
Key elements of anticipated global demand for Rare Earth Oxides:
                                 2012 Demand        2016 Demand         Increase
                                 Tonnes (China%) Tonnes (China%)
Permanent Magnets                23,000 (78%)        36,000 (78%)       56%
NiMH Batteries                   22,500 (73%)        30,000 (77%)       33%
Catalysts                        22,000 (58%)        25,000 (62%)       14%
Phosphors                         9,000 (67%)        12,000 (71%)       33%
Total REO                       115,000             160,000             39%
Chinese Demand                   77,000(67%)        104,000(65%)        35%

By 2016, the most significant surpluses (%supply>demand) of REO’s will include:
Lanthanum          41%
Cerium             25%
Samarium          275%

By 2016, the most significant shortages (%demand>supply) of R EO’s will include:
Europium           30%
Terbium            55%
Dysprosium         28%
Yttrium            35%                                   Source: IMCOA Aug 2012



                                                                                   5
Perspective: Global Rare Earth Supply
Key locations of current REE Reserves and Production include (in tonnes):
                                 Reserves (t)      Production (2011 t)
United States                    13,120,000               0
Australia                         1,700,000               0
China                            55,220,000(48%) 138,800(97%)
Others (CIS, India etc)          44,280,000           3,600
Global Total (rounded)          114,000,000        142,400
Source: USGS January 2012



Chinese Take On World Resources

United States                                      13,000,000
Australia                                           5,400,000
China                                              18,590,000 (23%)
Others                                             44,100,000
Global Total                                       81,090,000
Source: China Rare Earth Industry Association August 2012




                                                                            6
Perspective: Global Rare Earth Supply
The history of the Chinese export quotas is as follows:
             Quota (Tonnes)      % Change Over Prior Year
2005         65,609
2006         61,821              - 6%
2007         60,074              - 3%
2008         56,939              - 5%
2009         50,145              -12%
2010         30,258              -40%
2011         30,184              -0.2%
2012         30,996              + 3%


      LRE 27,122    M/HRE 3,874

However…
Only 18,600t of the 30,184t quota in
2011 was exported!




                                                            7
Perspective: REO Pricing




CeO2                            Dy2O3




 Eu2O3                          Nd2O3


                                        8
What Else Is Happening In China?
•   Fine-tuning the quota: now split into LRE and MLE/HRE quantities.
    Companies now required to pass pollution control inspections.

•   Mining licenses reduced: In 2012 only 67 mining licenses issued down from
    113 in 2011. Ionic clay licenses (included in the previous total) were down
    to 45 from 88 the year before.

•   Industry consolidation: in north China, Baotou Steel Rare Earths has
    announced forming a conglomerate to protect resources and improve
    vertical integration in the industry. This includes production, R&D, trading,
    stockpiling and capital management.

•   Baotou Rare Earths Exchange: established Sept 2012, founders control over
    80% of production and export quotas. The Exchange will attempt to
    stabilize pricing locally and internationally.


                                                                                    9
What Is Happening In The ROW?

•   Exploration and development still ongoing but slowing down.

•   More effort being put into HREE-enriched deposits

•   Third party separation plants are being built: already established in
    Vietnam, Laos and Thailand, India and announced in North America.

•   Initiatives focused on substitution, technical design, and recycling still
    ongoing




                                                                                 10
So Is The Panic Over?
                                What next?
•   Generally yes, but there is still concern over HREE.

•   Vertical integration still necessary outside China as there are still not enough
    third party processors.

•   Prices are still coming down. The Chinese are not interested in seeing prices
    drop too low. Whether their price control efforts work remains to be seen

•   If the price of LREE drops too far it effectively increases the cost of producing
    Nd/Pr and HREE.

•   Some substitution/technical advancement/recycling will be successful, but in
    most cases it will be hard to get rid of rare earths

•   HREE projects need to accelerate progress and LREE projects may not succeed.


                                                                                        11
W Vertically Integrate?
            hy
Upstream viewpoint:
  • Mining not profitable in times of low prices
  • Mining does not produce a saleable product outside China
  • Vertical integration results in saleable products and increased potential for
    profit when prices are low


Downstream viewpoint:
  • Dependency on China reduces security of supply for customers
  • Competitive pricing is difficult when purchasing raw materials from China
  • Vertical integration allows greater flexibility in fixing margins, increasing
    profitability and competitiveness while offering customers security of supply




                                                                                    12
GWMG Corporate Structure
                                                          Great
                                                         Western
                                                         Minerals
                                                          Group
                                                           Ltd.




    Various %      100%                        100%                  75%          100%         100%




   North                                     (Planned)               GQD
  American          Rareco                   Marketing               Joint         LCM           GWTI
 Exploration                                    Co.                 Venture

                     74%        B.E.E.
Hoidas Lake                          (26%)
Douglas River                                Tax Effective     Steenkampskraal   Birkenhead,     Troy,
Red Wine             SKK                       Location            Region           U.K
Benjamin River                                                                                 Michigan
                 (Steenkampskraal)




                                                                                                          13
GWMG’s Fully Integrated Model
  GWMG’s fully integrated model adds a sustainable competitive advantage


     Exploration               • Drilling Results & Mine Development Plan


               Mining                      • Ore


              Mixed Chloride Production             • Concentrate and Mixed Rare Earth Chloride


                    Solvent Extraction Separation            • Individual Rare Earth Oxides


                                    Metal Making                     • High Purity Rare Earth Metals


                                             Alloy Production
                                                                           • Magnet alloys, super-alloys &
                                                                             other end-user metal alloys


                                                   Industry Product Manufacturing



                                          • Industrial, Consumer & Military End Products

                                                                                                             14
GWMG: Maintaining Control
• Mining:
      • GWMG owns 74% of the SKK mining operation
      • GWMG owns 100% of the SKK mine output
• Mixed Chloride Production:
      • GWMG owns 100% of chloride production plant
• Solvent Extraction Separation:
      • GWMG owns 75% of separation plant, 100% of oxide
          production through GWMG marketing company
        • Marketing company has chloride separated on a
          tolling basis, retaining 100% GWMG control
•   Metal Making:
        • GWMG owns 100% of metal making that buys
          GWMG produced oxides
•   Alloy Production:
        • GWMG owns 100% of LCM and GWTI that
          manufacture alloys from GWMG owned metal




                                                           15
GWMG Milestones
GWMG focuses on major milestones during 2012/
                                            2013:

•   Operate with expanded furnace capacity at LCM.
•   Commence mining at Steenkampskraal
•   Q3 2012 scheduled receipt of chloride production plant
    and separation plant CapEx, OpEx and timelines.
•   Q4 2012 scheduled completion of Preliminary
    Economic Assessment.
•   EPCM for Mixed Chloride Production Plant for
    construction.
•   EPCM for Separation Plant for construction.




                                                             16
Thank You



Objective Capital Conferences        September 25th, 2012



 TSX.V: GWG OTCQX: GWMGF info@gwmg.ca www.gwmg.ca

More Related Content

What's hot

Resources roadshow april geoff laing, exco resources ltd
Resources roadshow april  geoff laing, exco resources ltdResources roadshow april  geoff laing, exco resources ltd
Resources roadshow april geoff laing, exco resources ltdSymposium
 
PNG Mining Seminar Presentation Nov 2011
PNG Mining Seminar Presentation Nov 2011PNG Mining Seminar Presentation Nov 2011
PNG Mining Seminar Presentation Nov 2011Foyson Resources
 
Champion Minerals Corporate Presentation - December 2011
Champion Minerals Corporate Presentation - December 2011Champion Minerals Corporate Presentation - December 2011
Champion Minerals Corporate Presentation - December 2011shosein2011
 
English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012shosein2011
 
Champion Minerals Corporate Presentation November 21, 2011
Champion Minerals Corporate  Presentation November 21, 2011Champion Minerals Corporate  Presentation November 21, 2011
Champion Minerals Corporate Presentation November 21, 2011shosein2011
 
Partnering with International Capital to develop West African minerals: Austr...
Partnering with International Capital to develop West African minerals: Austr...Partnering with International Capital to develop West African minerals: Austr...
Partnering with International Capital to develop West African minerals: Austr...Objective Capital Conferences
 
AGM Presentation Jan 5, 2012
AGM Presentation Jan 5, 2012AGM Presentation Jan 5, 2012
AGM Presentation Jan 5, 2012aldridgeminerals
 
Iron Road 2012 Annual General Meeting presentation
Iron Road 2012 Annual General Meeting presentationIron Road 2012 Annual General Meeting presentation
Iron Road 2012 Annual General Meeting presentationajstocks
 
Agm presentation feb 7 2012
Agm presentation feb 7 2012Agm presentation feb 7 2012
Agm presentation feb 7 2012aldridgeminerals
 
Agm presentation jan_18_2012_pdf
Agm presentation jan_18_2012_pdfAgm presentation jan_18_2012_pdf
Agm presentation jan_18_2012_pdfaldridgeminerals
 
Agm presentation dec_12__2011
Agm presentation dec_12__2011Agm presentation dec_12__2011
Agm presentation dec_12__2011aldridgeminerals
 
12 champion iron mines oct. 25th
12 champion iron mines oct. 25th12 champion iron mines oct. 25th
12 champion iron mines oct. 25thshosein2011
 
English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012shosein2011
 
EGM Presentation to Shareholders
EGM Presentation to ShareholdersEGM Presentation to Shareholders
EGM Presentation to ShareholdersFoyson Resources
 
Champion iron mines nov. 2012 en
Champion iron mines nov. 2012 enChampion iron mines nov. 2012 en
Champion iron mines nov. 2012 enshosein2011
 
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...Objective Capital Conferences
 

What's hot (20)

Capitalising on former-Soviet opportunities
Capitalising on former-Soviet opportunitiesCapitalising on former-Soviet opportunities
Capitalising on former-Soviet opportunities
 
Lithium supply: how much can the market digest?
Lithium supply: how much can the market digest?Lithium supply: how much can the market digest?
Lithium supply: how much can the market digest?
 
Resources roadshow april geoff laing, exco resources ltd
Resources roadshow april  geoff laing, exco resources ltdResources roadshow april  geoff laing, exco resources ltd
Resources roadshow april geoff laing, exco resources ltd
 
Integrated approach & South Africa opportunity
Integrated approach & South Africa opportunityIntegrated approach & South Africa opportunity
Integrated approach & South Africa opportunity
 
PNG Mining Seminar Presentation Nov 2011
PNG Mining Seminar Presentation Nov 2011PNG Mining Seminar Presentation Nov 2011
PNG Mining Seminar Presentation Nov 2011
 
Champion Minerals Corporate Presentation - December 2011
Champion Minerals Corporate Presentation - December 2011Champion Minerals Corporate Presentation - December 2011
Champion Minerals Corporate Presentation - December 2011
 
English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012
 
Champion Minerals Corporate Presentation November 21, 2011
Champion Minerals Corporate  Presentation November 21, 2011Champion Minerals Corporate  Presentation November 21, 2011
Champion Minerals Corporate Presentation November 21, 2011
 
Partnering with International Capital to develop West African minerals: Austr...
Partnering with International Capital to develop West African minerals: Austr...Partnering with International Capital to develop West African minerals: Austr...
Partnering with International Capital to develop West African minerals: Austr...
 
AGM Presentation Jan 5, 2012
AGM Presentation Jan 5, 2012AGM Presentation Jan 5, 2012
AGM Presentation Jan 5, 2012
 
Iron Road 2012 Annual General Meeting presentation
Iron Road 2012 Annual General Meeting presentationIron Road 2012 Annual General Meeting presentation
Iron Road 2012 Annual General Meeting presentation
 
Agm presentation feb 7 2012
Agm presentation feb 7 2012Agm presentation feb 7 2012
Agm presentation feb 7 2012
 
Agm presentation jan_18_2012_pdf
Agm presentation jan_18_2012_pdfAgm presentation jan_18_2012_pdf
Agm presentation jan_18_2012_pdf
 
Agm presentation dec_12__2011
Agm presentation dec_12__2011Agm presentation dec_12__2011
Agm presentation dec_12__2011
 
12 champion iron mines oct. 25th
12 champion iron mines oct. 25th12 champion iron mines oct. 25th
12 champion iron mines oct. 25th
 
English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012English champion iron_mines_october 9, 2012
English champion iron_mines_october 9, 2012
 
Corporate Presentation
Corporate PresentationCorporate Presentation
Corporate Presentation
 
EGM Presentation to Shareholders
EGM Presentation to ShareholdersEGM Presentation to Shareholders
EGM Presentation to Shareholders
 
Champion iron mines nov. 2012 en
Champion iron mines nov. 2012 enChampion iron mines nov. 2012 en
Champion iron mines nov. 2012 en
 
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...
Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rar...
 

Viewers also liked (11)

Building the next gold giant
Building the next gold giantBuilding the next gold giant
Building the next gold giant
 
Zeus: home of the heavies
Zeus: home of the heaviesZeus: home of the heavies
Zeus: home of the heavies
 
Building the next Saskatchewan potash giant
Building the next Saskatchewan potash giantBuilding the next Saskatchewan potash giant
Building the next Saskatchewan potash giant
 
Exploring Saskatchewan for world-class potash deposits
	Exploring Saskatchewan for world-class potash deposits	Exploring Saskatchewan for world-class potash deposits
Exploring Saskatchewan for world-class potash deposits
 
Developing Gold Projects in Tanzania and Namibia
Developing Gold Projects in Tanzania and NamibiaDeveloping Gold Projects in Tanzania and Namibia
Developing Gold Projects in Tanzania and Namibia
 
Investor Presentation
Investor PresentationInvestor Presentation
Investor Presentation
 
Gold and base metals exploration in Eritrea
Gold and base metals exploration in EritreaGold and base metals exploration in Eritrea
Gold and base metals exploration in Eritrea
 
Ngualla Project: Discovery to Development
Ngualla Project: Discovery to DevelopmentNgualla Project: Discovery to Development
Ngualla Project: Discovery to Development
 
Gold exploration in the Volta Region
Gold exploration in the Volta RegionGold exploration in the Volta Region
Gold exploration in the Volta Region
 
Exploration in Tanzania
Exploration in TanzaniaExploration in Tanzania
Exploration in Tanzania
 
Developing an integrated approach in Tanzania
Developing an integrated approach in TanzaniaDeveloping an integrated approach in Tanzania
Developing an integrated approach in Tanzania
 

Similar to What is the future of the Rare Earths sector?

Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.
Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.
Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.Brian McGann
 
Energold Corporate Presentation - September 2015
Energold Corporate Presentation - September 2015Energold Corporate Presentation - September 2015
Energold Corporate Presentation - September 2015Adnet Communications
 

Similar to What is the future of the Rare Earths sector? (20)

Nap investor presentation august 2012
Nap investor presentation august 2012Nap investor presentation august 2012
Nap investor presentation august 2012
 
Egd june-2012-presentation
Egd june-2012-presentationEgd june-2012-presentation
Egd june-2012-presentation
 
Investor Presentation
Investor PresentationInvestor Presentation
Investor Presentation
 
Egd may2015
Egd may2015Egd may2015
Egd may2015
 
Corporate Presentation June 2017
Corporate Presentation June 2017Corporate Presentation June 2017
Corporate Presentation June 2017
 
Egd sept2-12
Egd sept2-12Egd sept2-12
Egd sept2-12
 
Egd sept2-12
Egd sept2-12Egd sept2-12
Egd sept2-12
 
Egd dec2015
Egd dec2015Egd dec2015
Egd dec2015
 
Nap investor presentation august 2012
Nap investor presentation august 2012Nap investor presentation august 2012
Nap investor presentation august 2012
 
Egd jan2013
Egd jan2013Egd jan2013
Egd jan2013
 
Presentation
PresentationPresentation
Presentation
 
Nap investor presentation apr. 2012
Nap investor presentation apr. 2012Nap investor presentation apr. 2012
Nap investor presentation apr. 2012
 
Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.
Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.
Retaining Wall: A Structured Product for Mineral Wealth Generation in Guyana.
 
Corporate Presentation
Corporate PresentationCorporate Presentation
Corporate Presentation
 
Dec2018 egd
Dec2018 egdDec2018 egd
Dec2018 egd
 
Energold Corporate Presentation - September 2015
Energold Corporate Presentation - September 2015Energold Corporate Presentation - September 2015
Energold Corporate Presentation - September 2015
 
Energold Corporate Presentation
Energold Corporate PresentationEnergold Corporate Presentation
Energold Corporate Presentation
 
Energold Presentation - May 2016
Energold Presentation - May 2016Energold Presentation - May 2016
Energold Presentation - May 2016
 
Nap investor presentation feb. 2012
Nap investor presentation feb. 2012Nap investor presentation feb. 2012
Nap investor presentation feb. 2012
 
Nap investor presentation feb. 2012
Nap investor presentation feb. 2012Nap investor presentation feb. 2012
Nap investor presentation feb. 2012
 

More from Objective Capital Conferences

Skin Elements Corporate Presentation - London, Dec 2017
Skin Elements Corporate Presentation - London, Dec 2017 Skin Elements Corporate Presentation - London, Dec 2017
Skin Elements Corporate Presentation - London, Dec 2017 Objective Capital Conferences
 
Century Iron Mines Corporate Presentation - November 2013
Century Iron Mines Corporate Presentation - November 2013Century Iron Mines Corporate Presentation - November 2013
Century Iron Mines Corporate Presentation - November 2013Objective Capital Conferences
 
African mining: a macroeconomic and political analysis
African mining: a macroeconomic and political analysisAfrican mining: a macroeconomic and political analysis
African mining: a macroeconomic and political analysisObjective Capital Conferences
 
Initiatives to transform the capital markets in Ghana
Initiatives to transform the capital markets in GhanaInitiatives to transform the capital markets in Ghana
Initiatives to transform the capital markets in GhanaObjective Capital Conferences
 

More from Objective Capital Conferences (19)

Skin Elements Corporate Presentation - London, Dec 2017
Skin Elements Corporate Presentation - London, Dec 2017 Skin Elements Corporate Presentation - London, Dec 2017
Skin Elements Corporate Presentation - London, Dec 2017
 
Organto Presentation - November 2016
Organto Presentation - November 2016Organto Presentation - November 2016
Organto Presentation - November 2016
 
The next generation in proppants
The next generation in proppantsThe next generation in proppants
The next generation in proppants
 
The Global Proppants Industry
The Global Proppants IndustryThe Global Proppants Industry
The Global Proppants Industry
 
Next-Generation Fly-Ash Based Proppants
Next-Generation Fly-Ash Based ProppantsNext-Generation Fly-Ash Based Proppants
Next-Generation Fly-Ash Based Proppants
 
Goviex
GoviexGoviex
Goviex
 
CanAlaska Uranium
CanAlaska UraniumCanAlaska Uranium
CanAlaska Uranium
 
Uranium Equities
Uranium EquitiesUranium Equities
Uranium Equities
 
The World Nuclear Industry Status Report
The World Nuclear Industry Status ReportThe World Nuclear Industry Status Report
The World Nuclear Industry Status Report
 
KBL Mining Corporate Presentation - June 2015
KBL Mining Corporate Presentation - June 2015KBL Mining Corporate Presentation - June 2015
KBL Mining Corporate Presentation - June 2015
 
Century Iron Mines Corporate Presentation - November 2013
Century Iron Mines Corporate Presentation - November 2013Century Iron Mines Corporate Presentation - November 2013
Century Iron Mines Corporate Presentation - November 2013
 
Canoel International Energy - October 2013
Canoel International Energy - October 2013Canoel International Energy - October 2013
Canoel International Energy - October 2013
 
Century Iron Corporate Presentation - May 2013
Century Iron Corporate Presentation - May 2013Century Iron Corporate Presentation - May 2013
Century Iron Corporate Presentation - May 2013
 
Century Iron Mines Corporation
Century Iron Mines CorporationCentury Iron Mines Corporation
Century Iron Mines Corporation
 
'In the elevator'
'In the elevator''In the elevator'
'In the elevator'
 
Copper exploration in Oman and Turkey
Copper exploration in Oman and TurkeyCopper exploration in Oman and Turkey
Copper exploration in Oman and Turkey
 
African mining: a macroeconomic and political analysis
African mining: a macroeconomic and political analysisAfrican mining: a macroeconomic and political analysis
African mining: a macroeconomic and political analysis
 
Regional trade: the reality
Regional trade: the realityRegional trade: the reality
Regional trade: the reality
 
Initiatives to transform the capital markets in Ghana
Initiatives to transform the capital markets in GhanaInitiatives to transform the capital markets in Ghana
Initiatives to transform the capital markets in Ghana
 

Recently uploaded

Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKELtd
 

Recently uploaded (20)

Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
 

What is the future of the Rare Earths sector?

  • 1. GLOBAL RESOURCES INVESTMENT FORUM What is the future of the Rare Earths sector? Gary Billingsley – Executive Chairman, Great Western Minerals IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY, 25 SEPTEMBER 2012 www.ObjectiveCapitalConferences.com
  • 2. Rare Earths: What Does The Future Hold? Objective Capital Conferences London, UK Sept. 25th, 2012 TSX.V: GWG OTCQX: GWMGF info@gwmg.ca www.gwmg.ca
  • 3. Cautionary Statement on Forward Looking Statements 3
  • 4. Perspective: Global RE Projects August 2012 441 Projects…269 Companies…37 Countries 43 Advanced Projects 40 Companies 13 Countries Source: TMR, GWMG 4
  • 5. Perspective: Global Rare Earth Demand Key elements of anticipated global demand for Rare Earth Oxides: 2012 Demand 2016 Demand Increase Tonnes (China%) Tonnes (China%) Permanent Magnets 23,000 (78%) 36,000 (78%) 56% NiMH Batteries 22,500 (73%) 30,000 (77%) 33% Catalysts 22,000 (58%) 25,000 (62%) 14% Phosphors 9,000 (67%) 12,000 (71%) 33% Total REO 115,000 160,000 39% Chinese Demand 77,000(67%) 104,000(65%) 35% By 2016, the most significant surpluses (%supply>demand) of REO’s will include: Lanthanum 41% Cerium 25% Samarium 275% By 2016, the most significant shortages (%demand>supply) of R EO’s will include: Europium 30% Terbium 55% Dysprosium 28% Yttrium 35% Source: IMCOA Aug 2012 5
  • 6. Perspective: Global Rare Earth Supply Key locations of current REE Reserves and Production include (in tonnes): Reserves (t) Production (2011 t) United States 13,120,000 0 Australia 1,700,000 0 China 55,220,000(48%) 138,800(97%) Others (CIS, India etc) 44,280,000 3,600 Global Total (rounded) 114,000,000 142,400 Source: USGS January 2012 Chinese Take On World Resources United States 13,000,000 Australia 5,400,000 China 18,590,000 (23%) Others 44,100,000 Global Total 81,090,000 Source: China Rare Earth Industry Association August 2012 6
  • 7. Perspective: Global Rare Earth Supply The history of the Chinese export quotas is as follows: Quota (Tonnes) % Change Over Prior Year 2005 65,609 2006 61,821 - 6% 2007 60,074 - 3% 2008 56,939 - 5% 2009 50,145 -12% 2010 30,258 -40% 2011 30,184 -0.2% 2012 30,996 + 3% LRE 27,122 M/HRE 3,874 However… Only 18,600t of the 30,184t quota in 2011 was exported! 7
  • 8. Perspective: REO Pricing CeO2 Dy2O3 Eu2O3 Nd2O3 8
  • 9. What Else Is Happening In China? • Fine-tuning the quota: now split into LRE and MLE/HRE quantities. Companies now required to pass pollution control inspections. • Mining licenses reduced: In 2012 only 67 mining licenses issued down from 113 in 2011. Ionic clay licenses (included in the previous total) were down to 45 from 88 the year before. • Industry consolidation: in north China, Baotou Steel Rare Earths has announced forming a conglomerate to protect resources and improve vertical integration in the industry. This includes production, R&D, trading, stockpiling and capital management. • Baotou Rare Earths Exchange: established Sept 2012, founders control over 80% of production and export quotas. The Exchange will attempt to stabilize pricing locally and internationally. 9
  • 10. What Is Happening In The ROW? • Exploration and development still ongoing but slowing down. • More effort being put into HREE-enriched deposits • Third party separation plants are being built: already established in Vietnam, Laos and Thailand, India and announced in North America. • Initiatives focused on substitution, technical design, and recycling still ongoing 10
  • 11. So Is The Panic Over? What next? • Generally yes, but there is still concern over HREE. • Vertical integration still necessary outside China as there are still not enough third party processors. • Prices are still coming down. The Chinese are not interested in seeing prices drop too low. Whether their price control efforts work remains to be seen • If the price of LREE drops too far it effectively increases the cost of producing Nd/Pr and HREE. • Some substitution/technical advancement/recycling will be successful, but in most cases it will be hard to get rid of rare earths • HREE projects need to accelerate progress and LREE projects may not succeed. 11
  • 12. W Vertically Integrate? hy Upstream viewpoint: • Mining not profitable in times of low prices • Mining does not produce a saleable product outside China • Vertical integration results in saleable products and increased potential for profit when prices are low Downstream viewpoint: • Dependency on China reduces security of supply for customers • Competitive pricing is difficult when purchasing raw materials from China • Vertical integration allows greater flexibility in fixing margins, increasing profitability and competitiveness while offering customers security of supply 12
  • 13. GWMG Corporate Structure Great Western Minerals Group Ltd. Various % 100% 100% 75% 100% 100% North (Planned) GQD American Rareco Marketing Joint LCM GWTI Exploration Co. Venture 74% B.E.E. Hoidas Lake (26%) Douglas River Tax Effective Steenkampskraal Birkenhead, Troy, Red Wine SKK Location Region U.K Benjamin River Michigan (Steenkampskraal) 13
  • 14. GWMG’s Fully Integrated Model GWMG’s fully integrated model adds a sustainable competitive advantage Exploration • Drilling Results & Mine Development Plan Mining • Ore Mixed Chloride Production • Concentrate and Mixed Rare Earth Chloride Solvent Extraction Separation • Individual Rare Earth Oxides Metal Making • High Purity Rare Earth Metals Alloy Production • Magnet alloys, super-alloys & other end-user metal alloys Industry Product Manufacturing • Industrial, Consumer & Military End Products 14
  • 15. GWMG: Maintaining Control • Mining: • GWMG owns 74% of the SKK mining operation • GWMG owns 100% of the SKK mine output • Mixed Chloride Production: • GWMG owns 100% of chloride production plant • Solvent Extraction Separation: • GWMG owns 75% of separation plant, 100% of oxide production through GWMG marketing company • Marketing company has chloride separated on a tolling basis, retaining 100% GWMG control • Metal Making: • GWMG owns 100% of metal making that buys GWMG produced oxides • Alloy Production: • GWMG owns 100% of LCM and GWTI that manufacture alloys from GWMG owned metal 15
  • 16. GWMG Milestones GWMG focuses on major milestones during 2012/ 2013: • Operate with expanded furnace capacity at LCM. • Commence mining at Steenkampskraal • Q3 2012 scheduled receipt of chloride production plant and separation plant CapEx, OpEx and timelines. • Q4 2012 scheduled completion of Preliminary Economic Assessment. • EPCM for Mixed Chloride Production Plant for construction. • EPCM for Separation Plant for construction. 16
  • 17. Thank You Objective Capital Conferences September 25th, 2012 TSX.V: GWG OTCQX: GWMGF info@gwmg.ca www.gwmg.ca

Editor's Notes

  1. From a handful of active projects a few years ago to over 300 today