I read articles off their writers who often refer to Rare Industrial or Technical Metals as Rare Earth elements. I have to take some time and clean up the issue. I deal with RIMs and REEs on a regular basis. Both might both be considered metals but thats the location where the similarities end.
First we have REEs or Rare earth metals. These metals consist of 17 metals, the Lanthanides plus Scandium and Yttrium about the periodic table of the elements. These metals are in a powder form, making them challenging to assay and store. One important aspect that is often mentioned is that they arent rare. This is very true, but finding REEs in large deposits is tough.
Within the mining sector REE mines are standalone mines, that target the mining and refining of REEs exclusively. Currently around 97% of most REEs are mined and refined in China. Historically REE mining and refining has been a dirty business, that has affected environmental surroundings across the mines. The elements Thorium and Uranium tend to be found combined with the REEs inside the deposits causing the slurry to become slightly radioactive when processed. The usage of highly toxic acids through the processing also can have serious environmental impact. A lot of companies are trying to open REE mines but they are meeting headwinds, as nations and people dont want these mines in their backyard.
Throughout the last few years China has dramatically cut its export of REEs. This and also the increased need for REEs have caused a meteoric surge in the value of these metals. The one area that very few people talk about may be the role of the media along with speculators in raising the need for REE ETF´s particularly. For the last couple years REEs were the rock stars from the metals. This news has calmed as of late, however the demand and supply factors that caused the metals to soar continue to be in place. Recently China closed its BaoTao mine until REE prices stabilize.
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Rare Industrial Metals, RIM´s or Technical metals are another group entirely. The RIM´s are made up of metals found in over 80% of products we experience a daily basis. Without these metals you would not hold the world of the Modern day with our cell phones, hybrid cars, flat screen TV´s, highly efficient solar energy and computers. A few of these metals include Indium, Tellurium, Gallium, Tantalum and Hafnium. These metals actually are rare when compared to the Rare Earth Metals which in turn causes significant amounts of confusion. These metals will be in a metallic form, stable and straightforward to store and ship.
RIM´s are mined as a by-product of base or common metal mining. For instance Tellurium can be a by-product of Copper mining and Gallium can be a by-product of Aluminum and Zinc mining. The mining of the RIM´s currently are for the most part at the mercy of the markets for your base or common metal mining. In the event the Copper mines around the globe opt to cut production due to Copper losing value, this will get this amazing effect on the quantity of Tellurium that may be refined. Until recently, due to the previous small size the RIM market, many companies dont wish to invest money into better technology to mine and refine these metals. The RIM´s would have to be valued higher to achieve the interest from the mining industry.
When China cut exports of REEs in addition they cut exports of RIM´s. This put pressure on the value of these metals. RIM´s have risen in value, but nowhere close to the meteoric rise from the REEs. A lot of the metals increased in value around 47% this year and 25% to date next year. There is certainly still lots of room for development in the need for these metals (not based on speculation like REEs) as demand is exceeding supply now as well as in the future.
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For Example, when REEs and also the stock market recently fell sharply the RIM´s dropped slightly in value but have held their own very well. Over a further note, based on Knut Andersen of Swiss Metal Assets, ¨Even though prices from the Rare Industrial Metals still rise in value, consumers could eventually only see a really small increase in the cost of the conclusion products, because there is so little of each and every metal used to produce the products. Also if the folks can´t afford a smartphone theyll still buy less expensive phones that still utilize the same Rare Industrial Metals¨.
The need for RIM´s has risen sharply over the years and will continue to grow at astronomical rates. China, India, Latin america as well as the whole of Africa with billions of latest people are now buying and taking advantage of computers and cell phones to call just a few products.
The near future is bright for that technologies as well as the Rare Industrial Metals that will make them work and then for anyone that participates in stockpiling these metals now to meet future increased demand.
