Chaos in rare earths

The prices for the rare earth experienced a roller coaster ride. Even budding producers like Lynas have a hard.

This article comes from Ingrid Heinritzi >>to the original article<<

Im April 2012 hat China den Wirtschaftsverband für Rare earth founded. Whether it is accompanied by a reasonable price or the monopoly of China's development is perhaps further strengthened, it still is disagreement. Anyway did announce several mining companies now, that they want to promote the concept of rare earths outside China.

This is also important, These raw materials are in great demand and the necessary. The group of rare earths comprising 17 various metals. They are used for various electronic products, such as motors, Screens, Magnets, Batteries and bulbs. Das Quasimonopol besitzt China, because from there comes the vast majority of these metals. To lose that role and not to hold especially for the production of key technologies in their own country, China restricts exports again.

As the German Mineral Resources Agency said in a study, there would be in Greenland large reserves of rare earths (besides gold, Platinum, Uranium, Lead, Zinc, etc.), the global demand for 150 Could cover years. However, there is currently no mining operation, because the climatic and logistical conditions deter the mining companies. Also the removal of rare earths and especially the splitting into suitable crude charged extremely environmental. This is also another point, why in the China Rare Earth is greatly reduced.

But rare earth deposits are found enough on our planet. For example, Molycorp Minerals promotes again in the U.S. Rare Earths. But lower prices and higher production costs bestowed to the company in the third quarter 2012 a loss. CEO Mark Smith has probably therefore also leave after four years of Molycorp. But the reasons for leaving the company announce anything.

Another company, which currently makes headlines, Lynas is the Australian, whose shares are on a downward slide. Problem is the controversy with the Government of Malaysia, which urges, Lynas that exports the production of radioactive residues. Lynas wants to bring the funded from its mine in Western Australia to Malaysia Raw, order to separate the individual rare earths. But maybe Malaysia was in retrospect not the right choice for the location of the processing supported rare earths. The fear of the residents and environmentalists against radioactive contamination can take anywhere dimensions, can a mining company's undoing.

Whether an investment in rare earths worth, is a difficult question. According to Roland Berger experts will increase the prices for the heavy rare earths, while with the light rare earths more assumed a fall in prices. A bottleneck is expected mainly in the heavy rare earth.

Risks should be spread in any case. The individual companies, you can see that very clearly at Lynas, is difficult. Therefore, offer certificates, based on meherern titles. One example is the Open End basket certificate to Commerzbank Rare Earth Index Basket (ISIN: DE000CZ33EA1). The basket is made of approximately 15 Companies in the rare earth sector composed. High weights in the basket have Molycorp, Stans Energy und Lynas. A China Rare Earth Minerals and Greenland & Energy included.

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