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Old 05-26-2009, 12:49 AM
Sparty Sparty is offline
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Default China Rare Earths and WA Explorers

This is an interesting story that is becoming a "mantra". We started talking and posting about this issue a couple of years ago.... it seemed a no-brainer... then we got ANZed with the Opes Prime debacle that led to the loss of ADY's Rincon Salar Lithium brine lake....and now we are starting to see a recovery of interest in the Rare Earths and Lithium.

At the moment I hold Galaxy: GXY for their hard rock Lithium + Tantalum deposit, Lynas Corp: LYC for their enormously rich Mt Weld Rare Earths and Oz Minerals: OZL and Cudeco: CDU for their copper as all are vital to the emerging "Electron-Economy".

China moving on WA explorers



Article from: PerthNow
Neil Dowling, Motoring Editor
May 25, 2009 12:22pm



WA-based rare earth companies are under the spotlight by Chinese investors as demand for the metals soar on current and forecast sales of electric vehicles.

Rare earths metals such as lithium are vital components in the manufacture of electric motors and batteries.

Over the past fortnight, the share price of rare earth and lithium players has soared.

Galaxy Resources (lithium) has shot up 100 per cent in the past week (now about 80c) and Argentinian lithium explorer Orocobre Limited is up almost 200 per cent (now 63c) in about the same period.

More companies are following the trend.

Lynas Corporation has signed a $522 million deal with Chinese conglomerate China Non-Ferrous Metal Mining Co. for a slice of its Mt Weld rare earth deposit near Laverton in WA.

The Mt Weld deposit is regarded as the richest in the world.

The investment will fast track the project that has recently stalled because of a lack of finance.

CNMC will control four seats of the board and 51.6 per cent of Lynas' capital once the two parts of the deal are completed.

It will be noticed, says Sam Berridge of StateOne Equities, that the Chinese have interests in about 95 per cent of the world rare earth producers.

That puts them in the high seat when it comes to the predicted explosion in electric propulsion for passenger cars.

Another WA company that has exposure to rare earths is Alkane Resources.

The company, though WA based, has projects in NSW.

Its Dubbo Zirconia project, 30km south of Dubbo, has processed 67 tonnes of ore to produce 1150kg of zirconium and 165kg of niobium.

It is trialling the recovery through the plant of yttrium and the heavy rare earths and also the recovery of light rare earth concentrates from the niobium stocks.
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