Right now there is only one mine in the USA producing rare earth elements. They recently stopped mining and are just maintaining the mine. And this mine was the only one in the western hemisphere producing rare earths.The stopped production is because the price of rare earths has dropped a huge amount. We see this in the super cheap rare earth magnets available today. China is the world's top producer of rare earths and for a long time limited production of them in order to keep prices high. In fact the Chinese government still limits production. The problem is because there is about 4 times the legal amount mined. So there are plenty of illegal rare earth mines operating in China and the Chinese government has not been able to stop this mining. Hah! For a long time it has seemed that the Chinese have considered it ethical to steal intellectual property and then produce goods using this info. Every product seemed to be vulnerable to pirating. Now this ethic is biting them back. The pirated rare earths are much cheaper than the legal ones. A big part of this lower price is because the pirate mining operations don't have to follow the rules the legal mines do. Sound familiar? And the users of rare earth elements in China are buying them on the black market for so much less that demand from legal sources is dropping. Competition among pirate producers have caused further price drops. The Chinese government is really pissed off about this illegal maining but has not been able to stop it or even slow it down much. Boo hoo. Eric
- posted
8 years ago