The possibility that China could restrict the export of some rare earth metals, and completely ban the export of others, has caused a stir and, if Beijing should actually implement such a policy, would create opportunities for mining companies and projects around the world, including in South Africa.
Rare earths, as they are known for short, are little known (even in the broader mining industry) and unglamorous. They have strange, even outlandish, names, but they have become very important because of their use in modern high-technology devices, including superconductors, miniaturised magnets, lasers, optroelectronic systems, fuel cells, and components for hybrid cars, as well as in refining catalysts and older electronics applications, such as cathode ray tubes (used in TVs).
Although, as the US Geological Survey (USGS) points out, there are substitutes available for rare earths in many applications, these are generally less effective and, thus, decidedly second-best options. Moreover, in certain key applications in electronics and lasers, there are no substitutes. Not surprisingly, the global demand for rare earths is increasing.
There are 17 metals classified as rare earths, 15 of them being in the group scientifically designated as the lanthanoids (previously, lanthanides). The lanthanoids are (in order of increasing atomic number, which is the number of protons found in the nucleus of the atom concerned), lanthanum (atomic number 57), cerium (58), praseodymium (59), neodymium (60), promethium (61), samarium (62), europium (63), gadolinium (64), terbium (65), dysprosium (66), holmium (67), erbium (68), thulium (69), ytterbium (70) and lutetium (71).
Only promethium is radioactive.
The lanthanoids are chemically similar and their properties differ only slightly. In their elemental form, they are iron gray to silvery lustrous metals; they are usually soft, malleable, ductile and typically reactive – especially when finely divided or at high temperatures.
The other two rare earths are scandium (atomic number 21) and yttrium (39). They are grouped with the lanthanoids because they show similar chemical properties to, and are usually found in the same ore deposits as, lanthanoids.
Rare earths are more common in the planet’s crust than their name would imply. The most abundant of them, cerium, ranks twenty-fifth out of the 78 common elements in the crust, with an occurence of 60 parts per million (ppm). The least abundant of the group are thulium and lutetium, at around 0,5 ppm each. However, economically mineable concentrations are rare.
China currently produces more than 95% of the world’s rare earths. The China Rare Earth website lists 56 companies in that country which produce these metals. China’s draft ‘Rare Earths Industry Development Plan 2009–2015’ proposes that the country ban the export of dysprosium, terbium, thulium, lutetium and yttrium, and restrict the exports of all the other rare earth metals to a level below 35 000 t/y. The aim is to protect and promote the development of the country’s high-technology industries, and not to drive up prices or hold the world to ransom.
According to the USGS, global rare earth production was 124 000 t in 2008, of which 120 000 t came from China. The second- largest source is India, producing 2 700 t in 2008, followed by Brazil (650 t), and Malaysia (380 t). The USGS reports that rare earth production figures for the Commonwealth of Independent States (CIS – the former USSR) are not available. A Chinese company, Metall Rare Earths, reports that the CIS countries produce only very small quantities of these metals.
There is, however, a longer list of countries with significant rare earth reserves. According to the USGS, Chinese reserves of rare earths amount to 27 000 000 t, followed by the CIS with 19 000 000 t, then the US (which currently does not mine these metals) with 13 000 000 t, Australia (which also has no opera- tional mines at present) with 5 200 000 t, India with 1 100 000 t, Brazil with 48 000 t, and Malaysia with 30 000 t. Another 22 000 000 t of reserves is spread among a number of other countries, including Malawi, Sri Lanka, Thailand – and South Africa. Indeed, during the 1950s, South Africa was the world number one producer of rare earths.
As it happens, a number of rare earth mining projects are already under development outside China, and some of the companies concerned are now highlighting the draft Chinese plan for these metals. For example, Toronto-listed Ucore Uranium is developing the Bokan-Dotson Ridge rare earths project in south-east Alaska, while Australian junior Arafura Resources is developing the Nolans rare earths project in Australia’s Northern Territories.
Toronto-listed Great Western Minerals Group (GWMG) is developing four rare earths projects – one in South Africa. This is the Steenkampskraal project, aimed at refurbishing and recommissioning the old Steenkampskraal mine, some 70 km north of Vanrhynsdorp, in the Western Cape.
This project is a joint venture with Stellenbosch-based Rare Earth Extraction (Rareco), in terms of an agreement signed in January. Rareco acquired the decommissioned mine in 1989, but Chinese production rendered its reopening unviable until recently. GWMG will have the right to 100% of the rare earths mined at Steenkampskraal.
The mine is believed to have almost 30 000 t of recoverable rare earth metals, and can also produce thorium – indeed, it was origi- nally operated by Anglo American from 1952 to 1963 as a thorium mine. The prop- erty is permitted for mining until 2012 but the mining rights have to be converted from old order to new order and the application for this was submitted in April. The feasi- bility study is currently being updated.
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