Thursday, March 31, 2011

Good News For Rare Earths

A positive development today in the Rare Earth industry as United States legislators seem to be waking up to realize that a dire supply crisis looms.  It appears that a 3 year study has been suggested.  Keep in mind that we have suggested passing on investments in mines forecasting post 2016 production so this study will likely be a waste of time.

Rare Earths Get Some Congressional Attention Posted: March 31, 2011 at 3:08 pm

US Congressman Hank Johnson of Georgia has introduced a bill directing the US Geological Survey to conduct a three-year, comprehensive global assessment of rare earth elements. Now this might be a good idea, but it might also be an idea whose time has passed. Geologists already know most places where rare earth elements can be found (virtually everywhere) and in what concentrations (very scarce). Mineable concentrations of the rare earths are, well, rare. The chances are minuscule that the USGS or another country’s geological survey will find a huge new deposit of the stuff that will break China’s current stranglehold on global supply. 

 
The United States can rest easy though as they have chosen the right man for the job.  Congressman Hank Johnson of Georgia is a geological expert.  He is willing to ask the tough questions that many are scared to touch.  Last year during congressional testimony he asked the Navy Admiral Robert Willard if he feared that stationing too many Marines and their families on Guam could cause the small island to tip over?  (Click forward to 1:20 into the video if you bill by the hour as we aim to never waste your time)



For now, we will hold our positions in the best Rare Earth names.  By the time Congressman Johnson's commission finds them they should be worth several multiples of their current prices.

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