“The
highly depressed state of the REE (Rare Earth element) market at this time
would not make it a favourable time to make significant investments which would
be required. We need to keep monitoring the market as we proceed with our
research and development work”
JBI's Executive
Director, Dr. Parris Lyew-Ayee responding to emailed Questions from the Jamaica
Gleaner about the Japan’s Nippon Light Metals Test Pilot Plant to produce Rare Earth
Metals from Bauxite Red Mud
Jamaica
apparently has decided that Rare Earth aren’t worth it after all, despite the promise
of higher returns on RDA (Residue Disposal Area) Mud that result from the
processing of Bauxite.
After
spending some US$600 million on building a Pilot Test Plant to test out the
idea of Extracting Rare Earth Metals from that Red Mud, the project is now on a
protracted indefinate pause!
Japan’s
Nippon Light Metals,
after having invested some US$600 million, have decided not to go commercial
with the Plant citing the depressed Rare Earth Market as reported in the
article “Depressed
Rare Earth market puts Jamaica's project on hold”
Published Wednesday July 30, 2014, by Avia Collinder,
The Jamaica Gleaner.
Thus
I’ve gotten my answer as to why there has been no News about the progress of
the Rare Earth Pilot Plant hosted at the Headquarters of the JBI (Jamaica Bauxite
Institute near Hope Gardens as I'd opined in my blog
article entitled “No
news on progress of the Rare Earth Pilot Plant at JBI - Cuba-Jamaica CFL
Project Heralds manufacturing of LED's, Li-Ion Batteries and Sapphire Screens
in Jamaica”.
The
reason why the project got stalled after it got off to such a good start in
2012 when Japan’s Nippon
Light Metals expressed an interest in extracting Rare
Earth Metals from our Red Mud left over from Bauxite Mining as recorded in my blog
article entitled “Japan’s
Nippon Light Metal Company Limited to mine Rare Earth elements in Jamaica -
Jack Reacher (2013) recycling gadgets for Rare Earth Elements”
are mainly due to the resolution of a WTO dispute between Japan and China.
Japan, China and Rare Earth
- Glut created by Americans and Afghanistan's US$1 trillion potential
Apparently the Japanese have finally won their
case before the WTO (World Trade Organization). This forced China, who possess
97% of natural reserves of Rare Earth Metals, to resume exports after having
suspended them back in 2010 as I’d reported back in 2010 in my Geezam blog
article entitled “Chinese
Crisis in Rare Earth Metals – Afghanistan is Silicon Valley’s Savior”.
Unfortunately,
American began to resume production of Rare Earth Metals as well. Add to that
the fact that Afghanistan was discovered back in 2006 and then 2010 by the USGS
(United States Geological Survey) to have significant deposits of Rare Earth Metals,
valued at some US$1 trillion as noted in “$1
Trillion Trove of Rare Minerals Revealed Under Afghanistan”,
published September 04, 2014 07:35am ET by Charles Q. Choi, LiveScience
and a glut in Rare Earth Metals was the result.
Thus
the prices that Minister of Science, Technology, Energy and Mining Phillip
Paulwell promised of US$3,500 per kilogram on the International Mercantile Exchange
Markets for use in Electronics and All-Electric vehicles as I’d recorded in my blog
article entitled “Rare
Earth Metal Pilot Plant at Jamaica Bauxite Institute to test Rare Earth
Extraction Process - Nippon Light Metal Company Limited keen to beat China
using Red Mud from Bauxite Companies” are no more.
According
to Engineer Howard Chin, suggest that Minister Paulwell was being a bit over-ambitions,
point to out that the current prices were somewhere between US$1 to US$10 on
the markets. All thanks to the glut in Supply and Afghanistan's S$1 trillion
potential Rare Earth Deposits that can lift that country out of poverty!
Mining Rare Earth Metals
still viable – Cheaper Electricity needed as FDI’s interested in Copper and
Gold
Good
to note that even at US$1 per kilogram, that’s way more than the US$300 per
tonne that Alumina, the main product of Bauxite Mining make as noted in my blog
article entitled “Japan’s
Nippon Light Metal Company Limited to mine Rare Earth elements in Jamaica -
Jack Reacher (2013) recycling gadgets for Rare Earth Elements”
.
Also
ever since the Japanese have taken an interest in Jamaica, mining other
minerals such as Gold and Copper have been on the increase, with no less than
four (4) prospectors for Copper currently in Jamaica doing chemical assays of
bore samples to determine if copper is present in commercially viable
quantities as noted in my blog
article entitled “OZ
Minerals of Australia prospecting for Copper in Jamaica - How to get into
Mining Minerals in Jamaica and Vybz Kartel's Trailer Load of Money”.
Based on the article “How much gold is in those hills?”, published Sunday, August 17, 2014 BY KARENA BENNETT Business reporter, The Jamaica Observer, the following minerals being mined in Jamaica fetch the following prices at the Mercantile Exchange Spot Market:
1.
US$30,000 per kilogram for Gold
2.
US$6.60 per kilogram for Copper
Mining
Copper costs less than Rare Earth Mineral, yet prospectors’ in the form of
Canadian Firm, Carube Resources and Australia-based Oz Minerals, since 2011,
have been sinking millions in to the Bellas Gate Project with the hope of
making money. This wouldn’t haven’t been
ongoing since 2011 id there wasn’t money to be made from selling Copper
at US$6.60 per kilogram, which is still more than Bauxite.
So
market Economics argument aside, the reason for Japan’s Nippon Light Metals pulling out of the Test Pilot Project for
Extracting Rare Earth Metals from RDA Red Mud doesn’t make sense.
Also,
the high concentration of the RDA Red Mud means that the Rare Earth Metal
concentrations makes them easier to extract, reducing the costs of inputs such
as Electricity, the only thing aside from price stopping Japan’s Nippon Light Metals
from pursuing this project to fruition.
Had
Jamaica had cheaper electricity thanks to LNG Power Plant which the Dr. Vincent
Lawrence ESET has set for a 2017 completion as reported in my blog
article entitled “Dr.
Vincent Lawrence ESET sets 2017 for 381 MW Project - Why JPS Co says LNG even
though Ethane and Propane cheaper as Hydrogen Economy possible”,
not only would Bauxite flourish, but this project would be economically viable,
no matter what price Rare Earth Metals falls.
It’s
an indication of a poor business planning on the part of the Ministry of
Science, Technology, Energy and Mining and Japan’s Nippon Light Metals
when a company, after investing some US600 million, end up being thwarted just
because the price in the market falls.
Jamaica’s Mineral
Resources – Multimillion dollar Foreign Exchange Potential requires Investors
Still
there's other minerals that are yet to be fully exploited such as Iron and Titanium
Oxides, used mainly in Paints and Catalysts as noted in my blog
article entitled “Rare
Earth Metals Extraction from RDA Red Mud's got Titanium and Iron by-products -
All You Need is Kill the Scrap Metal Industry and Agriculture benefits in The
Place Beyond the Pines”.
This
as mentioned by JBI's Executive Director, Dr. Parris Lyew-Ayee, quote : “The
red mud ponds are multi-elemental resources, bearing REEs as well as iron,
titanium and several other valuable minerals. So it is difficult to put a value
on these deposits at this time”.
Rather
than being dead, the project is being regarded by the Ministry of Science, Technology,
Energy and Mining as being on a pause, thanks to China and Japan kissing and
making up. Already, it’s also causing an increased international interest in
our Mining Sector, as FDI (Foreign Direct Investors) come to Jamaica, literally
seeking Gold and other Precious minerals!
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