The Next Resource Shortage? – by David S. Abraham (New York Times – November 20, 2015)

http://www.nytimes.com/

WHEN world leaders gather in Paris later this month to forge an agreement on climate change, they will discuss ways to use less fossil fuel, expand energy-efficient technologies and reduce carbon dioxide emissions. Yet even as our leaders are pushing us to use fewer resources, their vision will force us to use more.

Though energy from the sun and wind appears boundless, the resources needed to turn it into power are not. And as we move away from oil, gas and coal, there is increasing demand for the rare metals that are at the heart of green technology. In the process, we are trading one resource dependency for another, and unleashing a new set of economic and environmental ramifications.

These rare metals — a group of roughly 50 that includes indium, rare earths and gallium — are produced in small quantities, often several thousands of tons annually or less;

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Cuts in China’s rare earth output not enough to revive hard-hit market – by Eric Onstad (Reuters U.S. – November 6, 2015)

http://www.reuters.com/

LONDON, Nov 6 (Reuters) – An output cut by six top rare-earth producers in China has spurred a modest rise in prices and is helping to steady a hard-hit market, but a continued glut of illegal output will likely cap any rebound.

Prices of 17 rare-earth elements used in high-tech sectors such as electronics, defence and renewable energy have been sliding over the past four years, hit by heavy oversupply.

Last month, the country’s top producer China Northern Rare Earth High Tech Corp and five other main suppliers said that due to weak prices, they would produce around 10 percent less than their 2015 government-set output targets.

China is the world’s dominant producer of rare earths, accounting for 90 percent of global supplies. “The cuts caused a short-term bump (in prices), but the real problem is that it’s only a small drop in the ocean,” said David Merriman, senior analyst at consultancy Roskill Information Services in London.

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Japan Gambles on Rare Earth Elements in Kazakhstan – by John C. K. Daly (Silk Road Reporters – November 3, 2015)

http://www.silkroadreporters.com/

In the past year, China, India, Japan, and the U.S. have all “rediscovered” Central Asia. While U.S. Secretary of State John Kerry lectures the five “Stans” on human rights and democracy, Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and Japanese Prime Minister Shinzo Abe all focused on the more prosaic issues of increasing bilateral trade and seeking investment opportunities.

In Kazakhstan, Abe, accompanied by 50 high-level company executives, scored a deal that will benefit Japan’s high technology sector as well as lessen its dependency on China, with whom relations have been fraying. Japan is the world’s largest importer of rare earth elements (REEs).

Minister of Investment and Development Asset Issekeshev met Nipponese Oil, Gas, and Metals National Corporation (JOGMEC) executives during Abe’s visit. The Ministry subsequently issued a statement noting, “JOGMEC and Kazgeologiia National Geological Exploration Company are expecting to start exploration works in spring 2016, primarily in territories rich in yttrium in Karaganda and Kostanai regions.”

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The threats to America’s minerals – by William Perry Pendley (Washington Times – November 1, 2015)

http://www.washingtontimes.com/

Death by a thousand paper cuts

William Perry Pendley, a lawyer, is president of Mountain States Legal Foundation in Denver and author of “Sagebrush Rebel: Reagan’s Battle with Environmental Extremists and Why It Matters Today” (Regnery, 2013).
Much has been written about the impossibility of developing America’s rich natural resources given the opposition of the Obama administration, radical environmentalists and actively empathetic judges; it has been a horror show for oil pipelines, energy on federal lands and coal anywhere.

What happens, however, when the minerals at issue are deemed critical to national defense, key to green technology innovation and crucial to contesting Chinese combativeness and therefore: the stars align, the White House gives its support and environmental groups eschew the courthouse? Sadly, as an essential rare earth elements mine in Wyoming reveals: death by a thousand bureaucratic paper cuts.

In 1980, Congressman Jim Santini, Nevada Democrat, warned of America’s risky reliance for strategic and critical minerals on foreign sources, primarily Africa. Gov. Ronald Reagan, in his 1977 radio address, decried a “campaign” by the Soviet Union and Cuba “to achieve strategic dominance over Africa with all its mineral riches.”

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Lithium – Lifting the Spirits – by Christopher Ecclestone (InvestorIntel.com – October 28, 2015)

http://investorintel.com/

You don’t get to hear a specialty metal mentioned often in a Woody Allen movie, but Lithium has managed to score a mention more than a few times. Of course it’s not that the gnomic director has suddenly been converted to a new variety of battery but rather that so many of his characters (and maybe his audience) need a pick-me up of some Lithium to cure (or ameliorate) what ails them.

Then again until 20 years ago the only mention the public ever heard of Lithium was in reference to its medical properties, even though its ceramic applications were massively more important volume-wise. Indeed Lithium was the word on everyone’s lips pre-1950 when it was a standard ingredient in 7-Up (the “up” being literal) and farther back it went into Lithia Coke (give me that over Cherry Coke any day!).

Indeed, it has been speculated (and even tried in some places) that putting Lithium into water supplies might lift people’s mood and reduce suicides. In 1990, a study in 27 counties in Texas found lower rates of not only suicide but also homicide and rape in those where the drinking water contained lithium. In 2009, research in Japan found lower suicide rates in areas with lithium in the water.

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Lithium prices tipped to rise 20 per cent by 2017 on demand for electric cars – by Peter Ker (Sydney Morning Herald – October 27, 2015)

http://www.smh.com.au/

Prices for lithium are forecast to rise strongly in the next two years, with widespread adoption of electric cars tipped to be a game changer for the third element on the periodic table.

While most demand for lithium carbonate comes from industrial companies producing ceramics and glass, Citi analyst Matthew Schembri believes demand will rise significantly when electric vehicles become mainstream and need the commodity for lithium-ion batteries.

Citi is very bullish about electric cars, and forecasts production of pure electric models (not hybrids) like the Nissan Leaf or the Tesla Model S to rise from about 150,000 in 2015 to about 290,000 in 2016. By 2020, Citi expects 1.04 million electric cars to be in production, implying sevenfold growth over five years.

In an extensive study of what the boom in electric cars will mean for lithium carbonate markets, Mr Schembri said demand for the commodity would rise almost 65 per cent over the next five years.

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The War Over the Periodic Table – by David S. Abraham (Bloomberg News – October 23, 2015)

http://www.bloombergview.com/

A little past 9:30 on the morning of Sept. 7, 2010, a Japanese Coast Guard vessel in the East China Sea spots a Chinese fishing trawler off the coast of islands, known as Senkaku in Japanese and Diaoyu in Chinese.

The Japanese have little tolerance for such incursions in the Senkakus, which they annexed in 1895 after the Sino-Japanese War. But recently China has asserted claims to these islands extending hundreds of years earlier. The island dispute is wrapped up in a morass of misunderstanding and oneupmanship, with an eye toward the rich seabed resources nearby.

When you ask Japanese officials about the territorial dispute, they will look at you as if it is almost insulting to answer the question. “It’s our land,” one government official told me, as if an American diplomat had been asked if Hawaii is part of the United States.

On that morning, the Japanese vessel pulls alongside the smaller Chinese trawler and blares messages to the crew in Chinese from loudspeakers: “You are inside Japanese territorial waters. Leave these waters.”

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The ‘Electronification’ of Everything – by David S. Abraham (Bloomberg News – October 22, 2015)

http://www.bloombergview.com/

Only about 150 years ago, almost all materials in a person’s home came from a nearby forest or quarry. By the 1960s, with more developed supply lines and more consumer appliances, the average American home contained about 20 different elements.

Since then, a revolution has transformed the products we use and the materials that allow them to work. Products now rely on elements that were once mere scientific oddities just a couple decades ago. In the 1990s Intel used only 15 elements in its computer chips.

Now the company demands close to 60 elements. While rare metals have been around since the beginning of time, most were just discovered in the past few hundred years, and some just in the past century.

This transformation in the products we use appear subtle to the untrained eye. Modern lights, for example, emanate hues slightly different from predecessors. But these subtle changes mask a profound change in resource use. Whereas Edison’s lightbulb contained a simple metal filament, the resources in today’s LED lights are more akin to computer hardware, powered by gallium, indium and rare-earth elements.

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The Elements of Power in the Rare-Metal Age – by David S. Abraham (Bloomberg News – October 21, 2015)

http://www.bloombergview.com/

“There’s no chance that the iPhone is going to get any significant market share — no chance,” Microsoft chief executive Steve Ballmer told a CEO forum before Steve Jobs released the iPhone in June 2007.

By the end of the first week of sales, however, most storeroom shelves were bare; Apple and its AT&T partner sold hundreds of thousands of phones. The company was on its way to taking more than 20 percent of the smartphone market within just a few months.

Only eight years later, we forget what a revolution the iPhone was. It became the first mainstream product to rely on a multi-touch glass screen, allowing the tapping, sliding and pinching that are now second nature for writing emails, determining directions and hailing a cab. As Steve Jobs himself said, “It works like magic.”

But in the initial hubbub little attention was paid to the iPhone’s most remarkable characteristic. The reason such a powerful device can sit comfortably in the palm of your hand is that it relies on nearly half the elements on the planet.

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Russia may face with shortage of gold and strategic commercial minerals during next 20 years – by Eugene Gerden (InvestorIntel.com – October 19, 2015)

http://investorintel.com/

Russia may face with a shortage of gold and some other strategic commercial minerals during the next 20 years, which is mainly due to the decline of the volume of exploration works in the country in recent years.

In the case of gold, the predicted growth of gold production in Russia up to 350 tonnes per year may result in the gradual depletion of gold reserves in Russia already by 2035, taking into account even projected resources.

This will be mainly due to lack of attention to the technological aspects of gold production in Russia, as well as the reduction of exploration works in recent years, because of the economic crisis in the country.

In the case of production methods, due to poor technologies, the losses of gold during ore processing usually reach 27%.

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Megafactory trend sparks ‘arms race’ in battery sector – by Simon Rees (MiningWeekly.com – September 29, 2015)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Tesla Motors’ so-called ‘gigafactory’ has sparked an “arms race” in the battery sector, Benchmark Mineral Intelligence MD Simon Moores told an audience attending the Toronto leg of the company’s World Tour 2015, in which Mining Weekly Online participated.

The gigafactory, now being built in Nevada, was designed to meet Tesla’s future battery requirements, either for electric vehicles (EV) or its Powerwall and Powerpack technologies.

“Battery majors, such as LG Chem or Samsung, have all responded with expansion plans for their new plants. Companies like BYD are also building their own battery plants. Boston Power is looking to expand, while Foxconn said they were going to enter battery manufacturing,” Moores stated.

“The megafactory trend is one the battery industry has not seen before. This is not an industry saying it expects to expand by 10% or 20% over the next three years – it’s at an order of magnitude that’s much bigger,” he added.

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How Tesla sparked the latest race for bigger, better batteries – by Michael McCullough (Canadian Business Magazine – September 1, 2015)

http://www.canadianbusiness.com/

Battery makers are suddenly finding themselves with an explosion of new markets to service—both big and small

You can be forgiven for thinking Tesla Motors is a car company. Yes, it started out making electric cars, but only because personal transportation is the lowest-hanging fruit in tackling the global energy and emissions problem. In fact, Tesla’s core mission is to make big batteries inexpensive and practical for any number of uses.

Last spring, founder Elon Musk unveiled a new product called Power­wall, a battery pack starting at US$3,000 that’s designed to power your whole home for 10 hours or more. If you have a solar panel on your roof, it will allow you to store the electricity produced during the day and use it in the evening to cook, do the laundry and max out your electronic devices.

Even if you don’t have solar panels, you may live in one of the growing number of jurisdictions where electricity costs rise and fall at different times of the day. You could save money on your utility bill by charging your Powerwall during the wee hours and drawing from it later.

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How a new battery revolution will change your life – by David J. Unger (Christian Science Monitor – August 30, 2015)

http://www.csmonitor.com/

A new generation of super cells promises to reshape the future of energy.

CAMBRIDGE, MASS.; AND ARGONNE, ILL. — It’s probably safe to say that freshman chemistry rarely ranks among college students’ most memorable courses. An overcrowded lecture hall teems with 18-year-olds with chins propped on palms. Eyelids droop at the mere mention of Planck’s constant or Bohr’s model of hydrogen. Yawns abound.

So when Donald Sadoway began teaching introductory chemistry at the Massachusetts Institute of Technology in Cambridge in 1995, he wanted to liven things up. Sure, he still lectured on the properties of atomic arrangements in crystalline and amorphous solids, but he did it an unusual way: He peppered his presentations with chemistry jokes only an MIT undergrad would understand and wove literature and art into the rigid lines and squares of the periodic table.

A lifelong music lover, Dr. Sadoway paired each lecture with a relevant tune. He’d play Handel’s “Water Music” in a lecture on hydrogen bonding and Aretha Franklin’s “Chain of Fools” in a class on polymers. For DNA – that famous double-helix spiral – he’d play Hank Ballard’s version of “The Twist.”

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Lynas blames illegal China miners for weak rare earth prices – by Sonali Paul (Reuters U.S. – October 14, 2015)

http://www.reuters.com/

MELBOURNE – Oct 14 Australia’s Lynas Corp blamed illegal Chinese miners for adding to an oversupply of rare earths which has driven prices down to historic lows, while demand from magnet users has weakened due to uncertainty over global growth.

Lynas is now the only rare earths miner outside China, which controls about 90 percent of the world’s supply, following a move by U.S. rival Molycorp, now in bankruptcy protection, to mothball its Mountain Pass mine due to weak prices.

Lynas reported gross sales revenue fell 11 percent to A$46.2 million in the September quarter from the June quarter as falling prices offset a 14 percent rise in sales volumes to 2,691 tonnes.

Weaker prices were partly due to increasing competition between legal and illegal rare earths producers in China, said the company, which mines in Australia and processes the material at its plant in Malaysia.

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Russia prepares for large-scale rare earth metals production – by Eugene Gerden (Investorintel.com – October 8, 2015)

http://investorintel.com/

The government of Russia’s Murmansk region, a region, located in the northwestern part of Russia, has started a search of an investor for the development of the local Afrikandovsky field of rare-earth metals, according to Alexei Tyukavin, first deputy-governor of the region.

According to Murmansk regional government, successfull development of the field will allow to establish a full-scale production of titanium dioxide, as well as rare-earth metals.

Estimated volume of investments in the project is 8 billion rubles (US$200 million). Ore reserves of the field will ensure continous operation of a mine and processing complex, that will be built later during the next 100 years.

The tender is expected to be completed by the end October of the current year. The license for an investor will be granted for 25 years. In addition to rare earth metals, titanium, iron, tantalum, niobium and other metals.

The Russian government puts big hopes on the implementation of the project, considering the Murmansk region as a new center of Russia’s rare-earth metals production.

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