I just read articles from other writers who often make reference to Rare Industrial or Technical Metals as Rare Earth elements. I would like to take a moment and clean up the issue. I deal with RIMs and REEs on a daily basis. The two might both be looked at metals that is the location where the similarities end.
First weve REEs or Rare earth metals. These metals contain 17 metals, the Lanthanides plus Scandium and Yttrium about the periodic table of the elements. These metals have been in a powder form, making them difficult to assay and store. One important factor thats often mentioned is they usually are not rare. This is true, but finding REEs in large deposits is hard.
Inside the mining sector REE mines are standalone mines, that concentrate on the mining and refining of REEs exclusively. Currently around 97% of all REEs are mined and refined in China. Historically REE mining and refining is a dirty business, which includes affected the surroundings around the mines. The sun and rain Thorium and Uranium are often found combined with the REEs inside the deposits resulting in the slurry being slightly radioactive when processed. The use of highly toxic acids during the processing can also have serious environmental impact. A lot of companies are attempting to open REE mines but theyre meeting headwinds, as nations the ones dont want these mines within their backyard.
Over the last couple of years China has dramatically cut its export of REEs. This as well as the increased requirement for REEs have caused a meteoric rise in the need for these metals. The main one area that not many people discuss will be the role from the media combined with speculators in raising value of REE ETF´s specifically. During the last couple years REEs were the rock stars with the metals. This news has calmed lately, nevertheless the demand and supply factors that caused the metals to soar continue to be in position. Recently China closed its BaoTao mine until REE prices stabilize.
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Rare Industrial Metals, RIM´s or Technical metals are another group entirely. The RIM´s comprise metals used in over 80% of products we use on a daily basis. Without these metals you wouldnt have the realm of the 21st century with this cellphones, compounds, lcd TV´s, highly efficient solar power and computers. Many of these metals include Indium, Tellurium, Gallium, Tantalum and Hafnium. These metals are really rare compared to the Rare Earth Metals which in turn causes a great deal of confusion. These metals are in a metallic form, stable and easy to keep and ship.
RIM´s are mined like a by-product of base or common metal mining. As an example Tellurium is a by-product of Copper mining and Gallium is a by-product of Aluminum and Zinc mining. The mining of the RIM´s currently are typically subject to the markets for your base or common metal mining. If the Copper mines around the globe decide to cut production because of Copper losing value, this will have a huge influence on how much Tellurium which can be refined. Alternatives, as a result of previous small size the RIM market, a lot of companies dont feel the need to take a position money into better technology to mine and refine these metals. The RIM´s would need to be valued greater to get the eye with the mining industry.
When China cut exports of REEs they also cut exports of RIM´s. This put pressure around the worth of these metals. RIM´s have increased in value, but nowhere nearby the meteoric rise with the REEs. Most of the metals increased in value around 47% this season and 25% up to now in 2011. There is still plenty of room for rise in value of these metals (not according to speculation like REEs) as demand is exceeding supply now plus the near future.
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For instance, when REEs as well as the stock exchange recently fell sharply the RIM´s reduced slightly in value but have held their very own well. On a further note, in accordance with Knut Andersen of Swiss Metal Assets, ¨Even though prices with the Rare Industrial Metals always go up in value, consumers will eventually only visit a tiny rise in the price of the end products, since there is so very little of each metal accustomed to produce these products. Also if individuals can´t afford a smartphone they are going to still buy less expensive phones that still utilize the same Rare Industrial Metals¨.
The requirement for RIM´s has risen sharply through the years and can keep growing at astronomical rates. China, India, South America and the whole of Africa with hundreds of millions of new consumers are now buying and ultizing computers and cellphones to call just a couple products.
The long run is bright for your technologies and the Rare Industrial Metals that make them work and for anyone who participates in stockpiling these metals now to satisfy future increased demand.
