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In an Industry Week piece from earlier this month, Paul Martyn, vice president of supply at BravoSolution, shares his thoughts on the dangers of China’s Rare Earths supply stranglehold from a U.S. manufacturing perspective, and ways to address this challenge.

Here are the key points from the piece:

• China’s near-total Rare Earths monopoly has given it the power to manipulate the REE market through production caps and export controls.

• According to Martyn, the “situation marks a time for manufacturers to break free from China and do what they do best: innovate,” – to “minimize China’s role by leveraging our primary assets and investing in local sourcing.”

• Successfully doubling down on exploring and developing non-Chinese sources of Rare Earths, at least a dozen of which are in the U.S. result in a “resurgence in the industrial backbone of the U.S.

• REE mining in the U.S. would connect three critical assets Martyn says we uniquely possess:

1. An innovative manufacturing industry with modern capabilities and technologies.
2. A supply of rare earth metals to exploit.
3. A large of the supply of natural gas, which could potentially make the fueling of both of these operations more cost effective.

• China’s price manipulations have led tech companies like Apple to move deeper into the supply chain, venturing into the local vertical markets. In doing so, U.S. electronics manufacturers are positioning themselves well against old “industry giants.” According to Martyn, this development points to definitive potential of a domestic manufacturing resurgence.

Martyn’s bottom line:

“In the next five to 10 years, manufacturers should be venturing out and looking for additional sources of supply. By looking at additional sources through folks in the equity world and mining industry, you can begin to get a sense of when additional supply may come out.”

Now that we’re done celebrating the 236th anniversary of our independence from England, it may be time to turn to present matters of dependency.

Over the past few months, we at American Resources have been highlighting the breadth of our mineral needs and potential by featuring metals and minerals for which the United States is largely import-dependent. Through our Metal of the Month series we have been showcasing the utilities of — as well as the challenges associated with — these critical materials.

Molybdenum differs from some of the other metals and minerals we have highlighted in that it is a material for which the United States, according to USGS data, is a net exporter – for now.

“Moly,” as industry wonks fondly call the material, is used primarily in the automotive, shipbuilding, construction, mining, and chemical industries as well as the energy sector to harden and strengthens steels and cast irons. Among others, its heat resistant properties also make it an important component in defense and aerospace applications, earning it a spot on the American Resources Risk Pyramid in our new report on Critical Minerals & National Security.

Recent industry reports show increasing demand for Molybdenum as usage of Molybdenum-bearing stainless and alloy steels has been on the rise in 2010 and 2011. The surge has been fueled largely by increasing need for such steels and other alloys in emerging economies like China, India, and Brazil.

While long-term market price predictions are uncertain, analysts see demand increasing for the next few years, making certain that Molybdenum will be a metal to keep a close eye on going forward.

Stay tuned for more Molybdenum-related updates on our blog, as well as on Twitter and Facebook throughout the month.

In his latest column for Real Clear World, American Resources principal Daniel McGroarty zeroes in on the newly-released Chinese government white paper entitled ‘Situation and Policies of China’s Rare Earths Industry’ and notes the insight it provides into China’s broader mineral strategy. McGroarty’s key points are as follows: · The white paper essentially sets the (…) more

Canada is a global leader in the mining industry and has benefited greatly from its natural resources. Yet despite its economic importance, the mining industry is poorly understood and debates on its local and global effects are increasingly polarized. MiningFacts.org is a new website offering timely research and articles that examine the economic, environmental, and (…) more

We’re thrilled to announce that Alana Wilson, a senior research analyst with the Canada-based Fraser’s Institute’s Global Centre for Mining Studies, has joined the American Resources panel of issue experts. Ms. Wilson is spearheading the Institute’s most recent project, a website called MiningFacts.org, which offers timely research and articles examining the often-misunderstood “economic, environmental, and (…) more

Earlier this month, China’s President Hu Jintao paid a three-day visit to Denmark. Danish officials were quick to dismiss speculations that Arctic issues were on the agenda, but the fact that “the leader of the world’s most populous country decided to visit a nation of 5.6-million for the first time in 62 years” only two (…) more

In an effort to secure access to critical metals and minerals for its industries, European Commission representatives Antonio Tajani (Vice President), and Andris Piebalgs (Commisisoner for Development Cooperation) have signed a letter of intent on cooperation with Greenland’s Prime Minister Kuupik Kleist. The June 13 letter of intent covers cooperation in the areas of joint (…) more

A cautionary tale comes to us from Argentina, where major resource companies are increasingly shying away from investments in light of growing populism on the part of the Argentinian government. The latest company to pull out of the country is Cameco Corp, a major Uranium producer, announcing the end to a joint-venture exploration project with (…) more

In a new opinion piece for the Montreal Gazette, American Resources policy expert and associate director of the Fraser Institute’s Global Natural Resource Policy Centre Jean Francois Minardi discusses the issue of resource nationalism in the context of Quebec’s Plan Nord – the Canadian province’s plan to develop its northern reaches in both strategic and (…) more

The U.S. Department of Energy has announced stepped-up research efforts into critical metals and minerals. Planning to spend up to $120 million, the department aims to create an “Energy Innovation Hub” with the goal to advance green energy technologies relying on critical mineral resources including (but not limited to) rare earths. Says Secretary of Energy (…) more