I am particularly intrigued by your statement “price points of rare earths allow development.” What price points would those be? Like most casual observers aren’t you marking the rare earths in undifferentiated ore concentrates at the same price as separated and highly refined oxides and metals, the actual articles of commerce? The value of ore concentrates is the first price point in the supply chain. If a mine today produces ore concentrates and sells them at that point it is not able to recover the capital costs in any reasonable time, if ever.

I am saying that the only way to avoid this problem is either vertical integration or government subsidies (handouts or “loan guarantees). Only the assemblers of the end products critically dependent on rare earth content are large enough and well capitalized enough to be able to integrate such money losing components as mines into their overall operations and still show a profit.

The Chinese have captured the rare earths supply market by being the lowest cost suppliers in the world. “Is Chinese mining subsidized(?)” is the same question as are all Chinese enterprises subsidized, by Harvard Business School standards.

Either non-Chinese miners get to play by the same accounting rules, or they get themselves into the business of adding enough value to get to a profit-making “price point,” or they seek out a public or private Uncle Sugar. Concentrates as a price point are no good.

Is that eccentric enough for you?

Jack Lifton

Further: if market conditions appear favorable any private company can make direct investment into rare earths any time they wish.
No share trading, Just direct investment. If you think you know a winning
situation you yourself can put together a private company and develop a mine. Why not ? Then you would satisfy your own requirement for the “actual development of a rare earth company”.

Some of your views on the mechanisms of the financial markets and
free market capitalism appear to be very eccentric.

Companies issue shares to capitalize the company. If they require further capital for a specific need they make another offering to raise the money for development purposes if required. i.e. they use that money to conduct research, build mines etc.

That’s how it works Jack. What alternative method of capitalizing companies and raising money for actual development would you suggest ?

Government subsidized companies is one alternative that I have heard you hinting at. Do you really think that a government sponsored business sector is a good way to go ? Where does it end ? Who do you subsidize and who do you not subsidize ? This just leads to the government having to pick winners, corruption and cronyism.

Get real Jack. Companies are developed using the system we have. It works; as is being demonstrated now that price points of rare earths allow development.

what is your Opinion about Ucore. I think they havent a seperation facility. And only with that, they will be able to be productive. I am a german guy, so apologize my bad english. Thank you for your answer.

Sincerely
Alexander