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Global Rare Earths Report - March 2013
Global Rare Earths Report - March 2013
March 2013
The LCM Rare Earths News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the state of the global rare earths industry.
London Commodity Markets Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ Tel: 00 44 (0) 203 514 600 Fax: 00 44 203 514 6001 3/15/2013
New boss signals new era for Lynas as non-Chinese rare earths supplier
Australian rare earths mining company Lynas Corporation Ltd recently announced that its current CEO, Nick Curtis, will be replaced by the end of March. Eric Noyrez will take over the rare earths giant from CEO Nick Curtis, the company said in a statement. Lynas said that the replacement was planned and reflects the companys shift from development to production. Sydney-based Lynas, the second-best performer on Australias benchmark stock index last year, is set to become the first new source of supply outside China in at least two decades with the start up this year of the A$535 million Mt. Weld project, the worlds richest deposit of rare earths according to Lynas. Curtis will remain on the Board as non-executive Chairman and in that capacity will continue to focus on strategy development and remain integrally involved in the development and implementation of Lynas Shared Value program. He will also continue to represent Lynas at the World Economic Forum and Co-Chair the WEFs Global Growth Companies group, the company said. The Lynas board also said that Liam Forde be appointed Deputy Chairman. Forde has been a Director of Lynas since 2007. Nick has been the inspirational force driving Lynas for the past 12 years, Eric Noyrez said. It was his experience in China that provided the pioneering vision to see the potential of the rich Mount Weld deposit, and it was his foresight and resilience that has ensured Lynas is now well capitalised and entering a new era as the first significant non-Chinese supplier of rare earths to original equipment manufacturers. Nick Curtis said: Achieving our first rare earths production last week is a significant transformational milestone, and a fitting time for us to allow Eric to take over all executive responsibility. The announcement came just days after Lynas revealed that its controversial Malaysia had produced its first rare earths products for customers. Photo Nick Curtis Photo Michael Armstrong-Lynas Corp
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With China controlling more than 95 per cent of the worlds rare earths, Lynass stock jumped almost fourfold since June 30 as investors sought more secure future supply. The dominance of China in rare earths was unsustainable, Curtis, chief executive officer of Lynas, said in an interview. Id pictured the need for order in the industry, that these were important metals that would ultimately need a stable, secure nonChina supply chain, Curtis said.
Mining Priority
China made rare earths production a priority in the early 1990s under Deng Xiaoping, dominating the market, pushing down prices and rendering mines elsewhere uneconomical. The government introduced its export quota system in 1999. Rare earth shortages followed the governments directive in 2006 to create larger domestic companies while curbing output and exports. About 50 per cent of global rare earth demand comes from customers outside China and they are looking elsewhere for supplies, Deutsche Bank AG said in a report last year. Global demand for rare earths is forecast to rise to $11.2 billion by 2014 from $7.8 billion last year, Lynas said in a presentation last month. Nicks always been an entrepreneur, said Warwick Grigor, an equity analyst at BGF Equity Pty Ltd. in Sydney, whos tracked the exceptional Mt. Weld deposit since the mid-1980s. He saw an opportunity there. Its probably an understanding of the market hes picked up from dealing with the Chinese. Full story and source: By Elisabeth Behrmann for Bloomberg.com
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In a letter to Rep. Johnson, U.S. Magnetic Materials Association President Ed Richardson wrote: This bill represents an important piece of a much-needed comprehensive approach to understanding current and future domestic and international supply of and demand for rare earth elements. Source: HankJohnson.House.Gov
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