Thursday, November 18, 2010

We must not allow an REE gap! - Part II

This news article is juicy, and it makes me scratch my head - the Molycorp guy is saying counter-intuitive things about the market that will not necessarily improve the company's standing. 

Question: If the industry that utilizes REEs is nearly entirely outside the country (electronics companies are mostly based in eastern asian countries), does it matter if the huge majority of the REE mines are outside the US? Based on this line of reasoning, it seems that the geopolitics between Malaysia or Taiwan and China is more crucial than the US and China.


Update: Ok, re-reading. He does say that China is reducing export quotas and that his company is starting a new mine and expects to produce at a lower cost. The rhetoric banter was slightly hidden by a clumsy reporter and a dislexic reader.

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