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DITRstocks

01/24/13 8:49 AM

#15531 RE: DITRstocks #15529

$USGT The USA does not produce natural graphite domestically and is almost completely dependent on imports for graphite supply. More than 50 percent of the national graphite requirement is met by imports from China, which is a cause for concern for the US government. The closure of graphite mines in China, which produces 75% of the world's graphite, has resulted in a fall in global graphite production to 1.3 million tonnes per annum in 2011. Like rare earths, China is restricting the export of graphite to protect its own domestic industries. The second largest producer is India, followed by Brazil, North Korea, Austria and Canada. The United States, Europe and China have included graphite among a short list of critical elements. The US Geological Service estimates the graphite market to be 10 times the size of the market for rare earth elements. The graphite market is about the same size as the market for nickel. With growing uses in high-tech and revolutionary products globally, such as lithium ion batteries, the need for a significant and secure domestic supply is critical. The Blue Wing Mountains Graphite Project has the potential to solve these challenges for the United States of America.