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Parliamentary committee reviews Canada's REE potential

http://www.northernminer.com/news/parliamentary-committee-reviews-canadas-ree-strategy/1003130695/

Parliamentary committee reviews Canada's REE potential

2014-06-25

VANCOUVER — Seven months ago the House of Commons Standing Committee on Natural Resources began a study on Canada's rare earth elements (REE) potential, which involved consultation with industry participants on the role the federal government has, and will, play in the sector's development. Today the committee released a preliminary report that outlines the state of global markets, and explores certain challenges associated with realizing a "strategic opportunity" inherent in Canada's REE endowment.

According to the report global production of REE currently totals 130,000 tonnes per year, which gives the industry an revenues of only US$4 billion annually. Though REE production is small in comparison to other metals, the committee noted that REEs support a manufacturing sector worth between US$2 trillion and US$4.8 trillion.

Director general of the industry and economic analysis branch of the Department of Natural Resources, Christiane Villemure, commented that: “Over the last 10 to 15 years, the world consumption of REEs has increased at 8% to 12% per annum, a trend that experts agree will continue, and may increase.”

In addition supply challenges are reportedly anticipated due to absence of efficient recycling programs, with industrial demand for certain REEs projected to shoot up by as much as 2,600% by 2025 according to studies from the Massachusetts Institute of Technology.

Five elements are highlighted in the report — neodymium, europium, terbium, dysprosium, and yttrium — due to "scarcity, high demand, and criticality in much high-tech application." The report also notes that the U.S. Department of Energy, Japan, and the European Community have all defined REEs as strategically "critical."

Governments have taken note of the global reliance on China for REE supply. Presently, China is the world’s largest producer of REEs, accounting for 95% of global production.

The committee estimated that total capital expenditures required to develop rare earth mines in Canada range from US$106 million to US$2.5 billion.

The report notes five projects modelled to reach production within the next five years, including: Avalon Rare Metals (TSE: AVL, NYSE-MKT: AVL) Nechalacho project in the Northwest Territories; Quest Rare Minerals (TSX: QRM, NYSE-MKT: QRM) Strange Lake project and Matamec's Zeus-Kipawa joint venture in Quebec; Pele Mountain Resources' (TSXV: GEM, US-OTC: GOLDF) Eco Ridge project in Ontario; and Orbite Aluminae's (TSX: ORT, US-OTC: EORBF) Grande-Vallée property in Quebec.
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The Standing Committee on Natural Resources

The Committee is pleased to make available the following document in printable format: The Rare Earth Elements Industry in Canada – Summary of Evidence

http://www.parl.gc.ca/Content/HOC/Committee/412/RNNR/WebDoc/WD6669744/412_RNNR_reldoc_PDF/RareEarthElements-Summary-e.pdf