Rare Earth Demand Skyrockets -- Molycorp and Rare Element Resources Poised to Benefit
The Paragon Report Provides Equity Research on Molycorp & Rare Element Resources
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 10/12/11 -- Demand for rare earth elements continues to skyrocket as the metals play an integral role in modern technology. It is estimated that China holds about 30 percent of the world's rare earth deposits, but accounts for over 95 percent of global production. With prices for the elements surging higher, explorers worldwide are finally trying to cash in on this lucrative sector. The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Molycop, Inc. (NYSE: MCP) and Rare Element Resources Ltd. (NYSE Amex: REE) (TSX: RES). Access to the full company reports can be found at:
Rare earths came under the spotlight two years ago after China started to reduce export quotas. Beijing's influence aroused concern when exports of rare earths to Japan were temporarily suspended after a diplomatic dispute. China has continued clamping down on production and sale of rare earth elements, citing a need to clean up highly polluting production processes and to stop illegal exports. Beijing said it cracked down on smuggling of rare earths and impose quotas for exports of rare earth alloy products as part of its campaign to strengthen control over the sector.
Statistics collected in Hong Kong show exports of rare earth metals have shrunk in half over the past year. Over the same period, the value of exports has soared to more than $121,000 per tonne, a 10-fold jump from a year ago.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the rare earth industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.
Mark Smith, CEO of Molycorp, explains that "unless alternative sources for rare earths are brought on, we are going to have a very significant shortfall in terms of how much material is available versus how much we need." Molycorp plans to double production in its California mine by the end of 2013. Presently Molycorp's Mountain Pass mine produces about 3 percent of the world's rare earths from stockpiled concentrate, but the company plans to eventually turn out a quarter of the total supply.
Earlier this month Molycorp announced that it discovered a heavy rare earth ore deposit on mining claims it owns near one of its facilities in southern California. While some of the light rare earths, like neodymium and cerium may have greater demand, the heavy rare earths are more valuable.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at
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Datum: 12.10.2011 - 06:16 Uhr
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