Seeking Alpha

EPS100Momentum's  Instablog

EPS100Momentum
Send Message
Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
My blog:
EPS100Momentum's Instablog at SeekingAlpha
  • Rare Earth stocks take a breather ahead of Historic "Vote" for Sector 2 comments
    Sep 28, 2010 1:15 PM | about stocks: REE, MCP, BWEN, FAN, WPCS, APWR, AMSC, MY, LYSCF, JOY, BUCY, CNH, DE, CAT, RIO, BHP, FCX, VALE, TCK, GNA, MTL, SID, TS, AKS, PKX, SSLT, GOLD, SLV, GLD, TC, GGB, X, GG, NUE, POT, MOS, CF, AGU, TNH, CLF, ANR, WLT, BTU, MEE, DOW, DD, EMN

     

    Yesterday's Top Story: U.S. House may vote on Rare Earths Act this week


    China's rumored threat to ban rare earth minerals exports to Japan last week may spur the U.S. House to vote on a domestic REE program this week.

    Author: Dorothy Kosich
    Posted:  Monday , 27 Sep 2010

    RENO, NV - 

    Last week's threat of China banning exports of rare earth minerals needed for manufacturing to Japan may help spur approval of the Rare Earths and Critical Materials Revitalization Act in U.S. House this week.

    China and Japan have been embroiled in a dispute since September 7 when Japan arrested the capital of a Chinese fishing trawler after his ship collided with Japanese coast guard vessels near a chain of disputed islands in the East China Sea. The Diaoyu Islands are considered sacred Chinese territories.

    China has already begun to restrict its exports of rare earth minerals to all countries in July. As former Chinese President Deng Xiaoping said in 1992, "The Middle East has oil, China has rare earth."

    Japan imports 50% of China's rare earth elements, considered crucial for manufacturing superconductors, computers, hybrid electric cars and other high-tech products, such as smartphones.

    Global REE production is estimated at 150,000 tons this year. However, they are rarely mined outside of China which is believed to have 57% of the REE deposits. China capped its exports at 30,300 tons for this year, a 40% decrease from 2009. Only 7,976 tons of REE have been allocated for the second half of this year with most of that supply having already been shipped.

    The U.S. Trade Representative is considering filing a suit with the World Trade Organization concerning China's rare-earth export restrictions. The U.S. Congress has ordered the Government Accountability Office to look into the military's dependence on REE for defense technology.

    In an interview with the Washington Post this past week, Ed Richardson, vice president of magnet maker Thomas & Skinner, said, "The most important issue here is that China is able to wield power like this."

    "Just the reports that they night have done something like this has sent a chill through the industry," he said. "Here you have an incident over a fishing board and this topic comes up. It's startling."

    Rare-earth metals have important defense applications because of their magnetic strength, which allows for miniaturization of components.  A professional military journal, Joint Force Quarterly, has recently published a report asserting that "China appears to be holding an unlikely trump card" in its dominance of the REE industry.

    The Pentagon is expected to release a report on the potential national security risks of rare-earth materials dependence next month.

    The House Committee on Science and Technology Thursday approved the Rare Earth and Critical Materials Revitalization Act of 2010, which authorizes the U.S. Department of Energy to develop a rare earth materials program "that will restore a long-term, secure and sustainable supply of rare earth materials to meet the needs of the United States."

    The program is also charged with seeking new or significantly improved processes and technologies for the rare earth materials industry.

    Committee Chairman Rep. Bart Gordon, D-Tenn., said he was concerned about the U.S. being held hostage with it came to access to REE for new technology.

    Meanwhile, U.S. Rare Earths announced last week that they awarded a contract to The Boeing Company to use remote sensing technology to map domestic REE deposits.  Boeing is also planning to tour U.S. Rare Earths deposits at Lehmi Pass on the Idaho/Montana border, and at Diamond Creek Idaho. The defense contractor is considered a large consumer of rare earths materials.

    Stocks: REE, MCP, BWEN, FAN, WPCS, APWR, AMSC, MY, LYSCF, JOY, BUCY, CNH, DE, CAT, RIO, BHP, FCX, VALE, TCK, GNA, MTL, SID, TS, AKS, PKX, SSLT, GOLD, SLV, GLD, TC, GGB, X, GG, NUE, POT, MOS, CF, AGU, TNH, CLF, ANR, WLT, BTU, MEE, DOW, DD, EMN
Back To EPS100Momentum's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • Author’s reply » Green Spending is why Rare Earth future is so bright:

     

    CHINA is spending over $200B

     

    USA is second with over $100B

     

    The green spending is the #1 reason why China needs all of its Rare earth elements for itself and will sooner rather than later halt all exports of the elements.

     

    Green Technologies are dependent on Rare Earth Elements:

     

    www.wri.org/chart/gree...
    28 Sep 2010, 02:31 PM Reply Like
  • Diversified is (APWR) and Biomass, Hydro, Solar, and Wind Power for China and the rest of the world !
    26 Oct 2010, 02:23 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.