China Makes a Play for Rare Earths
source: http://talkingskull.com/article/china-makes-play-for-rare-earths
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- Billy_Tarter
- added this
Everyone knows China is planning to take over the world. But with most of the focus centered on their booming economy, the Asian giant is quietly putting together an entirely different strategy, one which involves domination of natural resources. As the importance of oil dwindles over the next few decades, what will become the new scarcity? The answer is "rare earth".
Rare earth elements are perhaps not so much rare as they are expensive and difficult to extract. They're used in the manufacturing of computers, LCD screens, wind turbines, car parts, cellphones, missiles, light bulbs, solar panels, and countless other technological necessities. To call them essential would be an understatement. And China controls 97 percent of them.
The United States, unaccustomed to be caught tying its shoes as the starting gun is fired for a new global race, has suddenly realized the importance of rare earths and has recently passed new legislation aimed at rapidly increasing domestic production. In 2002, Molycorp (in Colorado) was shut for a variety of reasons (including low global prices for the critical minerals), but has since re-opened and is planning to dramatically ramp-up production as a central part of the US plan to improve their position. What's shocking is that apparently China attempted in 2005 to buy Molycorp as part of Unocal, which would have essentially given it total control of all of the world's rare earth elements. Thankfully that purchase was blocked.
More recently, China halted the delivery of all rare earths to Japan, as part of a diplomatic spat over a Chinese fisherman which Japan has refused to release. This has created some problems for Toyota, and has caused the value of rare earth stock market shares to soar. What seems likely in this situation is that China is using the fisherman as political cover to test their newfound resource-clout; specifically, to see what happens when they turn off the spigot.
As governments around the world freak out and put various mining plans into action, is it perhaps too little too late? Many are predicting that demand for rare earth elements may soon outstrip supply. Once the oil dries up, will rare earth become the next flashpoint for global conflict? And in the interest of global security, is it really unthinkable that we might need to start mining the moon?
***Lots of links at the original source article below. Sorry but they wouldn't paste properly above...
http://talkingskull.com/article/china-makes-play-for-rare-earths
Rare earth elements are perhaps not so much rare as they are expensive and difficult to extract. They're used in the manufacturing of computers, LCD screens, wind turbines, car parts, cellphones, missiles, light bulbs, solar panels, and countless other technological necessities. To call them essential would be an understatement. And China controls 97 percent of them.
The United States, unaccustomed to be caught tying its shoes as the starting gun is fired for a new global race, has suddenly realized the importance of rare earths and has recently passed new legislation aimed at rapidly increasing domestic production. In 2002, Molycorp (in Colorado) was shut for a variety of reasons (including low global prices for the critical minerals), but has since re-opened and is planning to dramatically ramp-up production as a central part of the US plan to improve their position. What's shocking is that apparently China attempted in 2005 to buy Molycorp as part of Unocal, which would have essentially given it total control of all of the world's rare earth elements. Thankfully that purchase was blocked.
More recently, China halted the delivery of all rare earths to Japan, as part of a diplomatic spat over a Chinese fisherman which Japan has refused to release. This has created some problems for Toyota, and has caused the value of rare earth stock market shares to soar. What seems likely in this situation is that China is using the fisherman as political cover to test their newfound resource-clout; specifically, to see what happens when they turn off the spigot.
As governments around the world freak out and put various mining plans into action, is it perhaps too little too late? Many are predicting that demand for rare earth elements may soon outstrip supply. Once the oil dries up, will rare earth become the next flashpoint for global conflict? And in the interest of global security, is it really unthinkable that we might need to start mining the moon?
***Lots of links at the original source article below. Sorry but they wouldn't paste properly above...
http://talkingskull.com/article/china-makes-play-for-rare-earths
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