Rare Earth Elements Are Not the Same As Rare Industrial Metals Someone said articles from other writers who often reference Rare Industrial or Technical Metals as Rare earth metals. I would like to take a moment and get rid of the issue. I cope with RIMs and REEs every day. Both might both be considered metals but that's where the similarities end.
First we now have REEs or Rare earth metals. These metals include 17 metals, the Lanthanides plus Scandium and Yttrium about the periodic table from the elements. These metals are in a powder form, which makes them difficult to assay and store. One important factor which is often mentioned is that they aren't rare. This is true, but finding REEs in large deposits is hard.
Within the mining sector REE mines are standalone mines, that focus on the mining and refining of REEs exclusively. Currently around 97% of REEs are mined and delicate in China. Historically REE mining and refining has become a dirty business, which includes affected the surroundings around the mines. The sun and rain Thorium and Uranium tend to be found combined with REEs inside the deposits resulting in the slurry to be slightly radioactive when processed. The usage of highly toxic acids through the processing may also have serious environmental impact. Most companies are trying to open REE mines but they are meeting headwinds, as nations and individuals don't want these mines inside their backyard.
Throughout the last several years China has dramatically cut its export of REEs. This as well as the increased need for REEs have caused a meteoric increase in the need for these metals. The one area that not many people discuss may be the role with the media along with speculators in raising the need for REE ETF´s in particular. During the last couple years REEs were the rock stars of the metals. What is the news has calmed lately, however the supply and demand factors that caused the metals to soar continue to be set up. Recently China closed its BaoTao mine until REE prices stabilize.
rare earth element stocksRare Industrial Metals, RIM´s or Technical metals are another group entirely. The RIM´s include metals found in over 80% of products we experience a daily basis. Without these metals you would not hold the arena of the 21st century with your mobile phones, compounds, flat screen TV´s, highly efficient solar power and computers. Some of these metals include Indium, Tellurium, Gallium, Tantalum and Hafnium. These metals actually are rare when compared to the Rare Earth Metals which in turn causes a great deal of confusion. These metals will be in a metallic form, stable and easy to hold and ship.
RIM´s are mined as a by-product of base or common metal mining. For example Tellurium is a by-product of Copper mining and Gallium is a by-product of Aluminum and Zinc mining. The mining from the RIM´s currently are generally at the mercy of the markets for the base or common metal mining. If the Copper mines on the planet choose to cut production due to Copper losing value, this will get this amazing influence on the amount of Tellurium that may be refined. Up until now, as a result of previous small sized the RIM market, most companies usually do not wish to take a position money into better technology to mine and refine these metals. The RIM´s will have to be valued greater to gain the eye with the mining industry.
When China cut exports of REEs in addition they cut exports of RIM´s. This put pressure about the price of these metals. RIM´s have risen in value, but nowhere near the meteoric rise with the REEs. Most of the metals increased in value around 47% in 2010 and 25% up to now next year. There is still plenty of room for rise in value of these metals (not based on speculation like REEs) as demand is exceeding supply now plus the long run.
rare earth element stocksFor instance, when REEs and also the stock market recently fell sharply the RIM´s came down slightly in value but have held their very own extremely well. On the further note, according to Knut Andersen of Swiss Metal Assets, ¨Even though prices from the Rare Industrial Metals always go up in value, consumers could eventually only view a tiny increase in the price of the finish products, because there is so little of every metal accustomed to produce these items. And if individuals can´t afford a smartphone they'll still buy more affordable phones that also use the same Rare Industrial Metals¨.
The requirement for RIM´s has risen sharply over the years and can continue to grow at astronomical rates. China, India, South America and also the whole of Africa with billions of recent consumers are now buying and using computers and mobile phones to name just a few products.
The long run is bright for your technologies as well as the Rare Industrial Metals which make them work and for anyone that participates in stockpiling these metals now to meet future increased demand.