The burgeoning global markets and growing high-tech applications for rare earth elements provides Ontario with an opportunity to expand its mining – and manufacturing — sectors, according to the Ontario Mining Association (OMA). The 17 rare earth elements are essential to the production of items such as permanent magnets, rechargeable batteries, electric and hydrogen vehicles, lasers and the miniaturisation of electronic devices among others – see the earlier article below on the US DOE’s report on these metals. As markets and applications expand, supply is strained. Worldwide demand for these elements is expected to outstrip supply by 40,000 t annually unless new sources are developed, the OMA says. The Ontario Mineral Deposit Inventory documents more than 200 known rare element and rare earth element mineral occurrences across the province.
The Ministry of Northern Development, Mines and Forestry says rare element and rare earth element minerals are among the non-traditional metals being targeted for exploration in Ontario. Areas with rare earth development potential in the province would include Bancroft, Elliot Lake, Hearst, Kenora, Marathon and Moosonee.
A hybrid car contains about 20 kg of rare earth elements. Demand in 2010 was forecast at 150,000 t with longer range projections indicating a demand of 2 Mt for hybrid, electric and hydrogen vehicles by 2025. Future supply problems for these strategic elements are being compounded by China. At the moment, it produces about 95% of global supply and has 37% of proven reserves. China recently announced it is cutting its rare earth exports by 35% in 2011, which follows hot on the heels of export reduction cuts in the second half of 2010.
The OMA says “Smart phones, hybrid cars, guided missiles, coloured televisions, ceramics, lasers, superconductors, high-tech magnets, medical diagnostic devices and numerous other applications all contain rare earth elements. A rare earth mineral sector could form the foundation for new manufacturing in Ontario for green and futuristic products.
“In effect, rare earth is a bit of a misnomer for these elements on the periodic table. Rare earth elements are actually relatively abundant in the Earth’s crust. However, because of their geochemical characteristics, they are generally dispersed and are not always found in concentrated and economically recoverable forms.”
The first rare earth elements yttrium and cerium were identified in the late 18th and early 19th centuries. The rarest of these, promethium, was not identified until 1945. Because of market dominance of one producer and contract secrecy, these commodity prices are hard to come by easily and their economics is as complex as their chemistry. However, glimpses of transactions show the heaviest rare earth element lutetium selling for $2,400/kg, samarium for $58/kg, europium for $1,120/kg and yttrium for $50/kg.
The OMA goes on to note that “nothing comes easy in mining and rare earth occurrences can’t become mines overnight even if economics support the case. However, with Ontario’s high potential and expansive geological endowment, there appears to be a realistic opportunity to expand the province’s mining sector with an ability to support a manufacturing resurgence of green products locally. Prior to the opening of De Beers Canada’s Victor Mine in 2008 near Attawapiskat, there was no diamond production in Ontario. Now the province has more diamond projects than any other jurisdiction in Canada, 131 ranging from production to grass roots exploration. It can be done.”
Meanwhile, Reuters reports that China is to further control extraction of rare earths and related pollution. China will step up its controls over the mining of rare earths and release new industry standards to cut pollution, a minister and media said on Friday, after the world’s biggest supplier cut export quotas for the minerals.
China slashed its export quota by 35% for the first half of 2011 compared with a year earlier, saying it wanted to conserve reserves and protect the environment. China will “strengthen the supervision and management of mineral resources mining … and deepen control over rare earth mining capacity and extraction,” Minister of Land and Resources Xu Shaoshi said on a webcast on the ministry’s website (www.mlr.gov.cn). He did not elaborate. Xu added that China’s campaign against illegal rare earths mining and effort to better manage the industry had achieved “notable results.”
Meanwhile, new environmental standards, described as “stringent” by an expert who helped draft the rules, would limit the amount of permissible pollutants in each liter of waste water, the official China Daily said.
Under the rules, expected to pinch rare earths miners with raised environmental protection costs, levels of ammonia nitrogen would be cut from 25 milligrams to 15 milligrams/litre, and radioactive elements and phosphorus emissions would be reduced.
The new regulations could be formally unveiled as soon as February after being approved by China’s Ministry of Environmental Protection in December, the China Daily said. It added that China was considering the creation of a rare earth industry association and a governmental unit to prevent more mining abuses.
China has said other countries should share the burden of mining the metals. Illegal mining practices and over-exporting rare earths have hurt China’s environment and depleted its resources, it says. But China’s quotas have sparked tension with global importers of the metals, and the US has threatened to take a complaint to the World Trade Organisation, which judges international trade disputes.
Japan’s trade minister said this week he wanted to visit China this month to talk to officials there to secure enough rare earths, which are vital to make electronics and clean energy technology including computers, wind turbines and electric cars.