"Investments in heavy rare earths remain attractive" (H.Weimer, Emuro GmbH)

New fridge technology, Tesla, E-mobility and alternative energy sources need gravity Rare earth

Interview mit Helmut Weimer, Emuro GmbHBE: Herr Weimer, how has the situation in the rare earths in the last 12 Developed months? Has the market bottomed out?Weimer: Due to the global economic downturn, we have felt a decline in demand. The resulting price consolidation as well as the immense Black exports, especially in the heavy rare earths, but should now have bottomed out. Here are the draconian penalties for Black exports and also the meantime begun building strategic reserves by the Chinese government (According to Asian Metal are doing remarkable amounts of terbium, but also neodymium, Gadolinium, Dysprosium and praseodymium are stored) beigetragen.BE: The demand has shifted within the rare earths?

Weimer: Our previous recommendations, ie the investment in the heavy rare earths, remain unchanged. Heavy rare earths are mainly used in "Green Technologies" (Electromobility, Wind turbines, Energy saving light bulbs) Use. Until the opening of at least one of the approximately 20 known deposits of heavy rare earths outside of China, the supply situation with these rare earths still at risk.
Meanwhile, General Electric has developed a new generation of highly efficient refrigerators (Anm. Red.:http://www.ingenieur.de / Themen / Ene… ). This new technology is based on a number of magnets, and is established technologies, which are used in refrigeration, replace soon. Best results are achieved had it with magnets, based on a gadolinium-containing alloy. This could increase the global demand for gadolinium significantly and can also increase the price of this metal up in the wake. So now we also assess additional gadolinium within the heavy rare earths as a promising plant metal.

BE: To what extent has demand changed by substitutes? According to Spiegel, should ensure that the global demand be shrunk by a third (http://www.manager-magazin.de/finanzen/a… What are rare earth or. Substitutes the?

Weimer: The statement of the mirror I can not agree in this form. On the one hand we have always warned before investing in rare earths certificates and also had in exploration shares from the rare earth region a conservative opinion.
A contraction in global demand for rare earths in the amount of approximately. 33%, caused by substitution, is not quite right. In phosphors is e.g.. a substitution of rare earths is not at all possible. What has changed, is e.g.. the quantitative needs of individual rare earths. In the phosphors e.g. has. faster than expected, a shift of the energy saving lamp by switching to LED occurred. This leads to, that is in the LED production less yttrium and europium needed in the future.
For wind turbines can also existing, Problems associated with disadvantages technical possibilities are used without the use of permanent magnets on. A substitution of rare earth-containing permanent magnets in the e-mobility is currently very restricted.
Individual producers tried to alternatives because of the price spikes to avoid. But this, unfortunately, at the expense of “Performance” and has now reversed again.

BE: Has Tesla Gigafactory also have an impact on rare earths?

Weimer: Preliminary we should presuppose or. accept, that the Gigafactory of Tesla can be realized on this scale ever. There are still a lot of uncertainties, which, above all, a reliable supply of raw materials as well as the not yet secured financing in the amount of approximately. 5 Billion. Include USD.
The new “Gigafactory” in particular, would drive the lithium consumption up. Even today, without prejudice to the lithium mining “in so far largely untouched ecosystems in China and South America”, as a study by the Fraunhofer Institute for Systems- and Innovation Research (ISI) notes. Other metals may cause problems, if Tesla its annual production from about. 22.500 Cars as planned at about 500.000 Expanding units. For electric cars are significantly more metallic raw materials such as copper, Lithium and rare earths needed than for conventional cars.

BE: How do you assess the WTO ruling in favor of developed countries regarding China's rare earth policy?

Weimer: The impact of the WTO ruling will likely be small. Firstly, China has gone in appeal and on the other hand, the Chinese have now begun, increase their own strategic reserves continue. The state-owned China Securities Journal wrote on April 9, 2014, that between the State Bureau of Material Reserve (SBMR) and a few large producers of rare earth (China Minmetals Rare Earth, Inner Mongolia Batou Steel Rare-Earth, Ganzhou Rae Earth, u.a.) an agreement was signed on reserves. There is talk of this, that over 13.000 Tonnes of additional rare earths to the strategic reserves of China will be added. According to Asian Metal are doing remarkable amounts of terbium, but also neodymium, Gadolinium, Dysprosium and praseodymium are stored.
Based on the volume of (national) China reserves are the major producers was forced by rare earth, their own reserves by about 30% increase. By market participants is therefore expected, that prices for rare earths in China will rise in the coming weeks in light of the increase in state reserves.
The point raised pollution or. -load in the WTO ruling, China will of course also use. The introduction of tax measures in this polluting sector has officially begun. China's plan, from 2015 introduce a new environmental tax on rare earths, is also, in the opinion of market experts rather to rising prices.

BE: What happened to the almost 300 Business has become, which took advantage of the situation a few years ago, to put up money for exploration projects in the capital market?

Weimer: We woke in the recent past with the reporting of now more than 400 potential deposits of rare earths desire, this would lead to considerable relief of the market and an easing of the Chinese deliveries. These had and we have a firm opinion: Of the more than 400 Deposits might be about fifty in a position, be able to complete their exploration, if they will continue with the required equity. At the current stage to hope for significant external funding, is not very likely. The Institutional investors have completely retired from the mine financing. Only private investors continue to participate in funding rounds, the above by the exploration company “private Placements” be handled.
There are two or three companies come into the real production phase, long term perhaps five, but the high investment for exploration, for the conveyors and the extremely high cost of separation plants (at Lynas there are now more than 1,3 Billion. australische Dollar) are an indication, that these projects never can be financed.

BE: How are the two major SE Explorateure Lynas and Molycorp?

Weimer: The two companies usually produce the light rare earths, which are dirt cheap. What companies need, are a high proportion of the more expensive and sought after rare earths, but which are found only in trace amounts in the deposits. And thus does not fit the entire financing of the deposits. So if Lynas and Molycorp enter full production, then they will flood the market for the light rare earths, prices this earth will go back and for the other newcomer, the earth is burned. China will continue its power, especially in the more strategic heavy rare earths, can exercise. A market facilitation by a great new listing in the heavy rare earths I do not see.
The repeatedly put forward evidence of the delivery potential of Lynas and Molycorp (USA) – So to the dependent not China deposits in Australia and the USA – stand on shaky ground. Lynas comes in its ultra-modern processing plant in Malaysia not in drive, because environmental groups shoot continuously across. For the first six months to the end of last year, Lynas reported a loss of 59,29 My. AUD, also additional funding for the repayment of loans and the planned increase in production over the next twelve months probably necessary.
Und Molycorp? Well, if they are to reach the repeatedly revised targets someday (this requires further major capital), then they produce due to the specifications of the Mountain Pass deposit almost exclusively light rare earths such as cerium, Lanthanum and as hope for these highly stressed society also quite a bit of neodymium, yes that is sought in the market for permanent magnets. From the very sought after heavy rare earths they hardly promote appreciable amounts. With pure numbers games, So may the earth with the tonnage sum of all these rare you do not analyze, but you have to focus on the values ​​and quantities of individual rare-earth metals. Since in the heavy rare earths the expected new delivery rates of Lynas and Molycorp will bring no relief.

BE: With Jamaica a Japanese mining company has an exploration agreement concluded. Has Jamaica really that large deposits, their degradation could move the market?

Weimer: Die Firma Nippon Light Metal Holdings aus Japan hat 2013 a joint-venture agreements with the Jamaican government, to future ca. 1.500 Dismantle tons of rare earths. To which rare earths are respectively. as the deposit detail is composed and how the development costs look, is not known until now. Whether this planned reduction, if it is realized, can move the market, I doubt it.

BE: What's the story reported in the mirror off, according to which Germany plans to cut rare earth mineral resources in the deep sea (http://article.wn.com/view/2014/… )? Will we live to see, or is it more of a Jules Verne story a la Journey to the Center of the Earth?

Weimer: The current deep-sea research raises to many questions. In particular, the environmental aspects are then to judge hardly reputable. Technically, the selective degradation on the sea floor is already possible, for the deep sea is the science but still not really ready. For the rare earth surveying of mineral deposits in the deep sea are connected excessively costly as well as with the risk, that an accurate exploration is not very reliable.
The crucial economic reference project from the scientist's perspective it functions before Papua New Guinea in the Pacific. The Canadian multi- “Nautilus Minerals” wants to cut there manganese nodules. In an area of 1,3 Kilometers long and up to 200 Meters width should there gold, Silver, Copper and zinc are. However, at present working in the Bismarck Sea due to a dispute are set by the government. The background to this is the Law of the Sea since 1982, which regulates the economic use of the sea mining within countries. And therein lies an additional fuel for the future.

BE: How is the customer interest in rare earths?

Weimer: Customer interest has risen again for several weeks. We have found, that many customers, in 2011 had made at higher prices Investments, the current price level to “Cost subsidies” have used. This applies especially to the special metal gallium addition to the heavy rare earths, so we look pretty optimistic about the future.

BE: How does an investor still best? Buy from bonded warehouse or storage at home?

Weimer: When storing it applies in principle anticipate some points to consider. It is especially important, that the stored goods, whether rare earths or special metals, be in original packaging and in tradable industries packaging units of the respective manufacturers. In addition, the associated chemical analysis of the corresponding rare earth oxides or Special Metals is absolutely necessary, a subsequent resale to the industry to ensure problem-free.
The storage in bonded warehouse saves the investor, of course, VAT and customs to a storage home. In addition, the logistical costs in a sale from the bonded warehouse is much lower, than a sale from a private deposit.

BE: Herr Weimer, thank you for the interview.

Interview conducted by Christoph Rohrmoser

Those: http://www.boerse-express.com/pagesfoonds/31113

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