Comments on: What Is The Japanese Perspective On The Rare-Earth Supply Issue?

By: fran

fran — Wed, 20 Jul 2011 23:57:45 +0000

ROBIT–

second major chinese purchase in three years; the USA can’t decide the merits of a major pipeline south fothe bitumen.

By: robit

robit — Wed, 20 Jul 2011 07:32:50 +0000

Jack, Fran and all
Here is another development in China’s movement on resources:
China’s Cnooc to buy OPTI Canada for $2.1B
China’s Cnooc Ltd. has agreed to buy OPTI Canada Inc. OPCDF for about US$2.1 billion, the companies said Wednesday. Cnooc, China’s biggest offshore oil and gas producer, will make the purchase through its wholly owned CNOOC Luxembourg SA subsidiary, the companies said in a statement. The deal is subject to regulatory approval in Canada and China, but the companies said they expect the transaction to be completed in the fourth quarter.

By: fran

fran — Tue, 19 Jul 2011 13:27:04 +0000

was the joint venture activity announce dec 2010 between HITACHI and MOLYCORP meant to address the substance of your essay?

By: Boris

Boris — Tue, 19 Jul 2011 08:41:31 +0000

@Lou Pearson
Aichi is world’s first player to make anizotropic NdFeB for polymer bonded magnets (in Europe for example: http://www.amagfine.cz/product/product.html ) . GWMG (via it’s subsidiaries) can make alloy (input material) for that. (http://www.raremetalblog.com/2011/04/great-western-minerals-group-signs-long-term-co-operation-agreement-with-aichi-steel-to-supply-rare-.html)

By: D. Carlton Rossi

D. Carlton Rossi — Mon, 18 Jul 2011 17:21:32 +0000

Mr. Lifton,

A brilliant piece of writing which is quite passionate and persuasive.

By: Max12345

Max12345 — Mon, 18 Jul 2011 02:53:43 +0000

It seems to me that for the international resource sector investor (who also wishes to focus on rare earths, among other hard commodities) the rivalry and / or competition for rare earths between Japan and China or between the U.S. and China or between the West and China can only mean good news if played correctly. One risk earlier mentioned was that China could suddenly flood the market with Rare Earths for two or three years just to bring down the many new Rare Earth explorers/developers/producers based outside China. It seems increasingly unlikely that China will want to do this, or far that matter be in a practical position to do it. Given the particular article above, of particular interest should be those Rare Earth companies whose development plans feature Japanese investment and related off-take agreements. All other things being equal the tighter the Japanese market becomes and/or the more control or manipulation of the RE market China engages in, (or is perceived to engage in) the more likely it becomes that production from these companies will come on line sooner or will in other ways be more significant. The entire situation with Rare Earth markets and needs -as tricky as it may be in various respects – presents fantastic investment opportunities.

By: blackjack

blackjack — Mon, 18 Jul 2011 02:36:52 +0000

Japan has forward contracts with LYNAS already – the closest refining of REE’s to market and already sold
Germany is not being left behind either
Siemens is working on vertical approach to Lynas supplying the REE’s and Siemens making the magnets.
Fail to plan ahead
plan to fail ahead

By: Bob M

Bob M — Mon, 18 Jul 2011 02:27:41 +0000

Very savvy, Jack. I think Hitachi Metals would be welcomed in the US as an excellent counterweight to China.

By: Furkhat Faizulla

Furkhat Faizulla — Mon, 18 Jul 2011 01:51:33 +0000

After Second World War, Unlike USA or China, Japanese is become a kind of people rather than change others for themselves, they adjust themselves. Everybody in Japan knew the security of supply of rare metal is very critical for its industry, but socialism like company culture and short term of management term (most of the key position in most of the big companies are usually 3 year and they take turn by aging people from bottom) will let them rather than take huge short term risk to go to invest oversea mines, they like to move its part of production to underdeveloped countries or try to work hard on technology domestically to find alternative material for the one tight in supply. As I know directly from my Japanese magnet manufacturers, almost all of them are in a talk or in the middle of move of moving their certain magnet production to China, also trying to replace or reduce tight in supply rare metals, like rare earth.

By: Richard Flook

Richard Flook — Sun, 17 Jul 2011 22:06:15 +0000

Hi Jack,
Wonderful blend of current affairs and history. I read some years ago a book that proposed in the long run, the economic strength of a country is based on the resouces within its boundaries. On this basis, the past economic strength of Britian and the current economic strength of Japan were/are anomalies. So are we witnessing an economic (and intellectual) transition in Asia not unlike the transition from Britain to the USA?