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American Resources Policy Network
Promoting the development of American mineral resources.
  • China’s REE Stranglehold Comes Back Into Focus

    If the first few weeks with a new administration at the helm in Washington, DC are any indication, we will see more efforts to make sweeping changes in federal policy in the coming weeks.  One area where President Donald Trump promised changes on the campaign trail is trade – and specifically relations with China.

    In a new piece for Fox News, Executive Vice President, Executive Editor for Fox News, John Moody zeroes in on trade relations with China, and raises the specter of the President and his administration becoming the victim of exactly the job-exporting policies he railed against and face the very real possibility that China could cut off U.S. access to 17 rare materials vital to our advanced aircraft and guided missile systems.”

    Followers of ARPN will know that the 17 rare materials in question are the so-called “Rare Earths,” (REEs), which are essential components of 21st Century technology, with applications ranging from personal gadgets to clean energy technology, and national defense, to name but a few.   Says Moody:

    “For precisely the reasons Candidate Trump cited for the decline of American manufacturing and the loss of U.S. jobs, China is now in a position to cut off our supply of processed rare earth elements if it feels Trump is pushing too hard on trade and economic issues—or anything else.”

    Defense and resource analyst Jeff Green, who is also a member of the American Resources panel of experts, confirms China’s “Trump card,” to which the piece’s title cleverly alludes:

    “Absolutely, China could cut off the supply. (…) Processing rare earths is the end of the hose. China controls the spigot the hose is attached to.”

    China being the main global producer of REEs, has long held a near-total supply monopoly for REEs, which it has not shied away from exploiting for political gain. For a few short years, a North American mining company sourced REEs domestically, thereby reducing our import reliance for REEs (with the lowest degree of net import reliance pegged at 63% in 2013).  For a number of reasons, however, the company went bankrupt in 2015, bringing our import reliance back up to 100%, with the bulk of our domestic supply still coming from China.

    While there is – at least in the short term – no silver bullet to this predicament, the case of REE dependence goes to show that resource policy does not occur in a vacuum, and is intrinsically intertwined with trade, economics and other policy areas. It also underscores the need to finally devise policies that help reduce our mineral resource dependencies by creating a framework allowing for the responsible development of our nation’s vast mineral and metal riches.

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  • As Japan Retreats, US Dozes Off Again On Critical Minerals

    Over the course of the last few months, slumping prices have prompted Japanese companies to reassess their rare metals strategies and cancel cooperative agreements that were once considered a high priority.

    As Nikkei Asian Review reports, state-owned Japan Oil, Gas and Metals National Corp. (JOGMEC) has cancelled a joint exploration contract for a tungsten mine in Australia, and chemical Showa Denko has announced plans to dissolve its China-based rare-earth magnet alloy-manufacturing and –selling subsidiary Baotou Show Rare Earth High-Tech New Material.

    The Japanese retreat is providing China, which is also putting out feelers regarding acquiring bankrupt American REE producer Molycorp after Japanese companies declined, with yet another opening to tighten its grip on the rare metals market.

    Says Rurika Imahashi, Nikkei staff writer:

    “Slowly but surely the market is being forged into an oligopoly. More than 100 rare-earth producers in China will be consolidated by June, leaving 90% of global supply in the hands of a mere six companies. Similar moves are also afoot in the antimony and other rare metals markets.”

    Imahashi’s observation regarding the consequences is spot on:

    “Concerns over supply may be waning due to falling prices, but stable supply could be at risk in the medium and long term.”

    Meanwhile, the United States appears to be dozing off again on the critical minerals front. While the USGS recently released a study showing that the U.S. reliance on foreign imports has increased significantly over the past 30 years, Congress has failed to pass legislation to facilitate exploration and development of domestic mineral resources for several years in a row.  Instead, like Buzz Lightyear — and in a sad commentary on the burdensome permitting process on the patch of Earth called the United States —  American lawmakers decided to look To Infinity and Beyond!, passing legislation allowing for the commercial extraction of minerals and other materials, including water from the moon and asteroids.

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  • U.S. Forest Service Puts Damper On New Year For Wyoming

    What could have been a great start of the year for Wyoming’s economy and the United States’ critical resource needs had the U.S. Forest Service (USFS) done its job, feels more like a hangover thanks to the agency. As Laura Skaer, executive director of the American Exploration & Mining Association, writes for the Casper Star Tribune, the [...]
  • The “Electronification of Everything” Raises Specter of “War Over the Periodic Table”

    Via our friend and ARPN expert Simon Moores’ Twitter feed, we came across a three-part must-read series for Bloomberg View, in which author and policy expert David S. Abraham discusses the role of rare earths in today’s increasingly high-tech world.   Perhaps most interestingly, Abraham clarifies a common misconception in part two of the series: “Although [...]
  • The Geo-Politics of Rare Earths: China Reported to Add to Stockpile

    ARPN readers know that one of the core tenets of the Resource Wars thesis is that the market for strategic and critical metals is never immune to government interventions. Witness today’s Bloomberg report: “China Said to Add 10,000 Tons to Rare Earths Stockpiles.” Bloomberg reports: “China may stockpile more medium-to-heavy rare earths this year such [...]
  • Tesla Motors’ Gigafactory to Drive Critical Mineral Demand

    The graphite, lithium and cobalt industries are set for major demand surges as Tesla Motors prepares to break ground on its super-battery plant, the Gigafactory, next month. The high-end EV manufacturer is looking to double the world’s battery output as it seeks to bring the production cost of battery packs down in a bid to [...]
  • 3D Printing & the “New Rare Earths”

    “3D printing companies are the new Rare Earths.” Thus spake Twitter, a few hundred-million Tweets ago, giving birth to the new meme on what matters most in our constantly-evolving technology world. Meaning, of course, that the furor over Rare Earths sparked three years back — when China used its then-97% production monopoly as a weapon [...]
  • The Epoch Times on why the Pentagon wants “to buy rocks”

    The Epoch Times’s Matthew Robertson takes a closer look at the Pentagon’s request to Congress “for over a billion dollars. To buy rocks” – at a time when budget cuts should be the order of the day in Washington. He notes that while in previous years, the Department of Defense merely noted China’s near-total monopoly [...]
  • New NCPA report traces REE potential and related obstacles in the U.S.

    It’s time the United States overhaul its outdated and rigid permitting process and begin harnessing our vast rare earths potential while promoting economic and job growth – that’s not just something the American Resources Policy Network has been advocating for quite some time, it is also the finding of a new study released by our [...]
  • Alaska Senate passes resolution in support of REE exploration

    Alaska continues to be a state leader when it comes to formulating mineral resource policy. In line with Gov. Sean Parnell’s five-part strategy to support the mining industry, the State Senate has passed a resolution in support of in-state Rare Earths exploration, which urges state agencies and the federal government to lend its support to [...]

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