From the Geological Society of America: Critical Minerals Ignite Geopolitical Storm
For Immediate Release 10 October 2011 GSA Release No. 11-66
The clean energy economy of the future hinges on a lot of things, chief among them the availability of the scores of rare earth minerals and other elements used to make everything from photovoltaic panels and cellphone displays to the permanent magnets in cutting edge new wind generators. And right out of the gate trouble is brewing over projected growth in demand for these minerals and the security of their supplies.
Last year, for instance, China restricted the export of neodymium, which is used in wind generators. The move was ostensibly to direct the supplies to toward a massive wind generation project within China. The effect, however, is to create a two-tiered price for neodymium: one inside China and another, higher price, for the rest of the world, explained economics professor Roderick Eggert of the Colorado School of Mines. The result could be that China not only will control the neodymium supply, but the manufacture of neodymium technology as well.
The geopolitical implications of critical minerals have started bringing together scientists, economists and policy makers who are trying to cut a path through the growing thicket of challenges. In that spirit, on Monday, October 10, 2011, Eggert and other professors will be presenting their research alongside high-level representatives from the U.S. Congress and Senate, the Office of the President of the U.S., the U.S. Geological Survey, in a session at the meeting of the Geological Society of America in Minneapolis.
Among the basics that need to be grasped to understand the current state of affairs is how rare these minerals and elements really are. Some are plentiful, but only found in rare places or are difficult to extract. Indium, for instance, is a byproduct of zinc mining and extraction. It is not economically viable to extract unless zinc is being sought in the same ore, Eggert explained, Others are just plain scarce, like rhenium and tellurium, which only exist in very small amounts in the Earth’s crust.
There are basically two responses to this sort of situation: use less of these minerals or improve the extraction of them from other ores in other parts of the world. The latter would seem to be where most people are heading.
“China’s efforts to restrict exports of mineral commodities garnered the attention of Congress and highlighted the need for the United States to assess the state of the Nation’s mineral policies and examine opportunities to produce rare earths and other strategic and critical minerals domestically,” reads the session abstract of Kathleen Benedetto of the Subcommittee on Energy and Mineral Resources, Committee on Natural Resources, U.S. House of Representatives. “Nine bills have been introduced in the House and Senate to address supply disruptions of rare earths and other important mineral commodities.”
Benedetto will be explaining the meaning and status of those bills, and what it will take to get them signed into law.
“Deposits of rare earth elements and other critical minerals occur throughout the Nation,” reads the abstract for another prominent session presenter: Marcia McNutt, director of the U.S. Geological Survey. She will be putting the current events in the larger historical perspective of mineral resource management, which has been the USGS’s job for more than 130 years. “The definition of ‘a critical mineral or material’ is extremely time dependent, as advances in materials science yield new products and the adoption of new technologies result in shifts in both supply and demand.”
The President’s Office of Science and Technology Policy has answered the call as well. Cyrus Wadia will be presenting a five-point strategy to begin addressing the matter. The first point is to mitigating long term risks associated with the use of critical materials. The second, diversify supplies of raw materials. Third, to promote a domestic supply chain for areas of strategic importance like clean energy. Fourth, inform decision makers; and fifth, prepare the workforce of the next generation.
Some of these minerals are no doubt there and available in many places, but not easy to find in commercial quantities. Many universities need to re-introduce mineral exploration geoscience, which has been so poorly funded since the green movement swamped western earth science universities since about the early 1990s.
The Nordic ski shop in Crested Butte, CO, eagerly displays posters opposing a proposed molybdenum mine nearby, but will happily sell you molybdenum-based waxes for your skis.
God bless em. The Chinese might save us from the Gore parasites, by inflicting them on their own people.
Talk about taking one for the team. Thank you China.
Friends:
The article says;
“Last year, for instance, China restricted the export of neodymium, which is used in wind generators. The move was ostensibly to direct the supplies to toward a massive wind generation project within China. The effect, however, is to create a two-tiered price for neodymium: one inside China and another, higher price, for the rest of the world, explained economics professor Roderick Eggert of the Colorado School of Mines.”
Can anybody please tell me what is the problem?
Every supplier of any commodity has a right to get the highest price for the commodity and can choose to use it personally at whatever cost seems appropriate.
Higher cost to purchasers of a commodity encourages search for alternatives (i.e. alternative sources of the commodity or alternative materials or methods to the commodity) which enhances technology.
Richard
Fourth, inform decision makers Of what? ; and fifth, prepare the workforce of the next generation. for what?
Might I offer a sixth? Recycle older components. One of the richest sources of some rare earths’ is the scrap pile from obsolete equipment.
I’m all in favor of attention brought to the supply of raw and primary materials. Indium doesn’t grow on trees. But at the same time, let’s not commit a “Club of Rome” mistake of assuming a resource base far too limited and underestimate technological ability to substitute other materials. The supply of rare-earths is limited to a great extent by the fact that few people look for them. Raise the demand and the price and that is very likely to change, as will the resource base.
There is an old rule of thumb in Mineral Economics. The is usually only a 10-20 year lifetime of “proved reserves” of almost any mineral asset. On a time-value of money basis, it just doesn’t pay to prove up reserves 20-50 years out. In discussions, always be mindfull of the difference between “reserves” and “resources.”
Richard Courtney.
I seem to remember there was a recent press report of a rare earth find in your neck of the woods. Is that so? Sounds as if some shares in that mine would be worthwhile.
tonyb
Richard S Courtney says:
October 10, 2011 at 1:15 am
Can anybody please tell me what is the problem?
The problem is, that politicians in the West, have made much noise about all these “green” jobs, that the production of wind subsidy farm equipment will create.
Our crafty oriental suppliers, are making sure that these jobs will be created in China.
Molon Labe says:
October 10, 2011 at 1:00 am
The Nordic ski shop in Crested Butte, CO, eagerly displays posters opposing a proposed molybdenum mine nearby, but will happily sell you molybdenum-based waxes for your skis.
NIMBY will reign supreme. It so happens that rare earths are commonly associated with ancient metamorphic core complexes and continental shield rocks, in other words, scenic, flagship, world-heritage-type stuff. You can bet that the Homestake Neodymium Mine will be smack dab in the middle of hallowed landscapes. I mean, how did “Telluride” get its name? Not from a population of people who ogle bikers, to be sure. A compound, AuTe2 was the mainstay of that lofty Colorado green boutique, early in its history.
The problem is capitalism is bad,until capitalism works in their favour.
The Democratic Republic of Congo is a big supplier of niobium used in the magnets of wind generators and electric vehicles. Profits go to the DRC government to pay for the civil war in that country. The DRC is neither democratic or a true republic.
The socialist agenda of the CAGW has succeeded in driving carbon intensive industries of Europe and the USA out to China … Australian manufacturing was destroyed by our fabulous Labor governments and their union sycophants in decades past so we don’t have much left to go.
China has been stockpiling mineral resources for ages and will soon have the markets cornered … so Western countries can look forward to their strategic manipulation by China in the years top come.
No mention, as yet, here of the massive Chinese penetration of central and eastern African countries where Chinese economic aid is being exchanged for mining rights to various valuable mineral resources. British TV has shown several documentaries this year where this policy is proving productive. In South America, also, China is taking great interest in mines in Brazil and Chile. Presumably, western governments are aware of these developments.
Of course, installing a two-tiered price for any product is a form of government subsidy, in this case subsidy for permanent magnets in (modern) direct-drive wind generators.
China’s government subsidizes any new technology that they feel is important for the long term economic growth of the nation, and alternative energy is at the top of their list.
In the US, we heavily subsidize technology which has a very short-term impact (like agriculture and fossil fuel extraction), but subsidy of new technology and innovation leading to long-term advantages is scrutinized and harshly treated as a ‘waste’ of tax payer money.
In the end, we’ll see which strategy works better…
Me writes “The problem is capitalism is bad,until capitalism works in their favour.”
This is the inevitable result of China’s slow creep towards capitalism…Conversely it could be stated that Capitalism is good until capitalism works against you and this is the rest of the world’s sour grapes. The dragon awakes.
Option 7 or 8:Indium is more common in space as are many of the rare mineral and PMG metals.
TimTheToolMan Who are the ones first up at the plate to denounce capitalism?
But when there is money to be raked in by the green machine then capitalism is ok all of a sudden.
The US has some of the biggest rare earth deposits in the world, but currently has no operational mines or processing technology.
If a tiny fraction of the money wasted on ‘climate change’ projects was allocated towards the construction of rare earths mining and refining capacity, the US (and the rest of the world) would not being held to ransom by China.
The link below helps illustrate the seriousness of this problem.
http://geology.com/articles/rare-earth-elements/
Easy solution. Western governments stop subsidising the installation of solar panels and wind turbines, demand for these minerals falls through the floor and the Chinese are left holding a load of worthless rock.
Me wonders “Who are the ones first up at the plate to denounce capitalism?”
A “country” doesn’t denounce capitalism, its people do.
And people can and do change.
The inherent problem is that the alternative is fossil fuel, which is unacceptable to the same folks that find increased mining of these minerals unacceptable. And those folks happen to be in power right now.
The President’s Office of Science and Technology Policy has answered the call as well.
I’m glad the President’s on the case. He will not rest until he has a solution.
LET’S HOPE THAT ANDREA ROSSI IS ABOUT TO END ALL THIS NONSENSE.(LOOKS MORE LIKELY EVERY DAY)
WE MIGHT EVEN BE ABLE TO USE TRANSMUTATION TO SUPPLY VALUABLE ELEMENTS.
P.S. 3D PRINTERS ARE NOW PRODUCING 3D PRINTERS. ARE THEY BREEDING?
The entire article is rubbish. Rare earth minerals are not rare, most are fairly plentiful. What is rare is any money to be made in mining them, and in the USA, large piles of regulations making sure they are not mined.
It’s just a puff piece for this
Sorry, & completely OT – but had no idea where to post this revelation with limitations!
http://www.bbc.co.uk/news/science-environment-15199065
It seems it’s the Sun all along but it isn’t, all at the same time – only Eurpoe & Uk, no mention of South American cold winters, not those in SA or Australis/New Zealand, etc. They are runnning out of excuses, running scared, & out of time! They knew they had to get control within certain time limits or the game would be up, as it now is well & truly!
AtB 🙂
One long-term fix is to not let rare earth based products be shipped back to China as scrap after they reached their end of life and mandate recycling in the country/economic sphere where they were sold. Another obviously is looking for the stuff on your own turf and research to replace them with cheaper alternatives or a different technological approach (i.e. no use of permanent magnets in electric motors/generators but use of active stator/rotor coils).