Japan’s Nippon Light Metal Company Limited to mine Rare Earth elements in Jamaica - Jack Reacher recycling gadgets for Rare Earth Elements

“The concentration of rare earth elements in mineable quantities around the world is unusual, and the concentration of rare earth elements found in Jamaica’s red mud deposits are significantly greater than what is known about other red mud sites around the world”

Minister of Science, Technology Energy and Mining Phillip Paulwell in Parliament on Tuesday January 15, 2013 as reported by the Jamaica Observer

Jamaica, it seems, is on the cusp of a great Rare Earth Adventure as was hinted in The Jamaica Gleaner article “Paulwell to make big mining announcement”, published Tuesday | January 15, 2013 by Daraine Luton, Senior Staff Reporter, The Jamaica Gleaner.  

Nippon Light Metal Company Limited a Japanese Mining firm has discovered very high concentrations of Rare Earth Metals in the Red Mud left over from the process of extracting Alumina from Bauxite located in the RDA (Residue Disposal Area) of Bauxite Companies as reported in “Jamaica could earn billions from Japanese firm’s research here”, published Wednesday, January 16, 2013 BY ALICIA DUNKLEY Senior staff reporter, The Jamaica Observer.

This as announced in Parliament on Tuesday January 15, 2013 by the Minister of Science, Technology Energy and Mining Phillip Paulwell. The potential of this discovery is huge as it’s ironic; a value-added product valued at least US$3500 per Kilogram being extracted by a Japanese mining company from Red Mud Waste left over from the production of Alumina. An even better twist: Alumina, JAMALCO’s sole product, sells for less than US$300 per metric tonnes at a price that’s artificially low thanks to recycling of Aluminum and China flooding the market which cheap aluminum.

The irony of Recycling as the Waste becomes more valuable than the product thanks to Rare Earth Metals in RDA Waste as was suggested in my Geezam blog article entitled “How American and Canadian investors Plan to make money from the US$10 million Trade in Plastics and other Recyclables in Jamaica” and my blog article entitled “Panther Corporation of Canada sets up solar Powered Recycling Center - Investing in The Apparition of Jamaica's Waste Management Problem”. A fulfillment of Jesus’ Masonic edict of the Stone that’s seen as less valuable becoming the chief Cornerstone!

The Japanese firm, Nippon Light Metal Company Limited, a 10,000 employee strong outfit with average revenues of US$7 billion, has already signed a MOU (Memorandum of understanding) with the GOJ (Government of Jamaica) since September 2012, when they’d begun their research. So confident are they that they’ve already projected extractions rates of 1,500 metric tonnes and have already committed US$3 million a joint venture with the JBI (Jamaica Bauxite Institute).

The profits from the venture, if commercialized, will be split 50/50 in a partnership with the GOJ, but for now Nippon Light Metal Company Limited is standing the full cost of the project. Jamaica, folks, thanks to the Bauxite Company’s maintenance of the RDA, has now become akin to Afghanistan in terms of the levels of Rare Earth Metals in our Red Mud.

This makes Jamaica a potentially huge supplier to Japan, helping them to cushion themselves against China’s 90% Monopoly of Rare Earth Metals and their habit of reducing export quotas of Rare Earth Metals back in 2010 to boost prices as noted in my Geezam Blog article entitled “Chinese Crisis in Rare Earth Metals: Afghanistan is Silicon Valley's Savior”.

Currently the prices of Rare Earth Metals have been falling since the Fourth Quarter of 2012 as reported in The Wall Street Journal  article entitled “Prices of Rare Earths Succumb to Gravity”, published November 12, 2012, 7:07 p.m. ET by Rhiannon Hoyle, The Wall Street Journal resulting in a current oversupply of REE (Rare Earths Elements) as they are called on the Mercantile Stock Exchanges.

This is thanks in part to due diligence in the usage of Rare Earth Metals by Japanese Electronics manufacturers as noted in “China’s grip on the world’s rare earth market may be slipping”, published October 19, 2012 at 11:03 am by Brad Plumer, The Washington Post.

Also, increased mining activities by heavy hitters in the Rare Earth Mining outside of China such as Molycorp and Lynas as noted in “Analysis: Rare earth prices to erode on fresh supply, China”, published Wednesday Sep 19, 2012 8:26am EDT By Eric Onstad, Reuters helped to create an oversupply and thus push the price down by the end of the Fourth Quarter of 2012, with current prices in US$/Kg shown below:

 

Thus it’s no coincidence that Nippon Light Metal Company Limited was in Jamaica since September looking into extracting Rare Earth Metals from Red Mud stockpiled in the RDA of Jamaican Bauxite companies. The boom in smartphones, Tablets and Television sets was creating a demand for which they needed a low cost supply of Rare Earth Metals, making doing the research feasible.

This discovery has the potential to revitalize the Bauxite Mining Sector that’s now basically committed to LNG (Liquid Natural Gas) as an Energy source in order to remain competitive against the Chinese as stated in my blog article entitled “JPS Co parents Marubeni and EWP mull decision to supply LNG - GOJ to eat Humble Pie to avoid an Ice Age Continental Drift”.

It also opens up a whole new sector of Mining in Rare Earth Metals as predicted from 2012 in my blog article entitled “PM Portia Simpson Milller ALCOA Talks hint at LNG - Lady Gaga's Paparazzi in Jamaica's  Bauxite Sector”  and  Gold as predicted in my blog article entitled “AUSJAM and the Pennants Gold Mine Rush - King Solomon’s Mines in Clarendon”.

It’s not mentioned in the article but trust me, Gold is in Jamaica. Already Rio Minerals Jamaica Limited showing interest via requesting a Exclusive license for committing to Gold Mining in the Mavis Bank Area in St. Andrew and parts of St. Thomas as noted in the article “GOLD HUNT ON!” published Tuesday December 11, 2012, The Jamaica Gleaner.

Naturally the news has everyone excited, including yours truly as I had worked as a Process Engineer with a contractor named ACS (Automated and Computer Supplies) and was based for 2 months on the JAMALCO Plant, an Alumina Mining company located in Halse Hall, Clarendon. I even did several blog articles while at JAMALCO, one of which featured Honeywell as noted in my blog article entitled “Honeywell partners with Immarsat for In-Flight Satellite Broadband in 2013AD - Konshens Gal a Bubble for Qualcomm Airplane Broadband”.

However, both newspapers have done editorials that suggest they like the money part, approximately US$1.5 billion in projected revenues from 1,500 metric tonnes of Rare Earth Minerals as noted in “Keeping our fingers crossed on this red mud hope”, published Wednesday, January 16, 2013, The Jamaica Observer and “EDITORIAL - The potential of rare-earth metals”, published Thursday January 17, 2013, The Jamaica Gleaner.

But again they display a lack of knowledge, (or is it disinterest?) in the Chemistry part or even the potential environmental impact of Rare Earth Mining may have on the Environment.

The environmental impact is not much different from that Gold Mining and the issue of the use of Cyanide, which the development of the use of Cupriavidus metallidurans bacterium to extract Gold from toxic Gold (III) Chloride (Au₂Cl₆) would solve as argued in my blog article entitled “Cupriavidus metallidurans Bactrium used by Michigan State Professors to produce Gold Nuggets - BioChemistry Step Up Revolution for Cyanide Free Gold Mining”.

It should be of grave concern, as NEPA (National Environmental and Planning Agency) doesn’t have the legal or physical resources to police or enforce punishment for breaches against the Environment as noted by freelance environmentalist, Sociologist and Roman Catholic deacon, Peter Espeut in his opinion piece “Transparency and mining”, published Friday November 23, 2012 by Peter Espeut, The Jamaica Gleaner.

The GOJ’s keenness on developing and diversifying Mining is very much in keeping with developments in the wider Caribbean in Mining. Guyana comes easily to mind as an example of Mining being both a good money earner but having a negative impact on the Environment.

Natural Resources Minister Robert Persaud having to declare a ban on Gold Mining operations in July of 2012 due to its negative impact on the Forest areas and Rivers from Cyanide pollution as noted in “Guyana bans gold, diamond mining in rivers”, published Sunday July 8, 2012, The Jamaica Gleaner. Gold Mining earns approximately US$1 billion per annum, dwarfing its previous top money earner, Sugar.

Clearly there’s money in mining Rare Earth Minerals and Gold, but it has disastrous environmental consequences. But what are Rare Earth Minerals, seeing as Gold, a Transition Metal is a No-brainer? And why are they so valuable?

Rare Earth Metals belong to the series of Metals in the Periodic Table known as Transition Metals, so called as they can have multiple oxidation states. Of the Transition Metals, Rare Earth Metals, mainly consisting of the Lanthanides along with Ytterbium and Scandium are so named as not because they are less abundant than the other metals but because they are not as heavily concentrated in any given spot. Hence the reason for their high price tag; a list of them and their prices on the Mercantile Stock Exchange can be seen below:

Most of the Earth’s Metallic Resources can be easily mined from the Earth’s Lithosphere, the upper crust of the Earth upon which we live. Interesting too, like the Noble Gases with their outer shells of electrons full paired up, these Rare Earth Metals are fairly unreactive. When they do react, they exhibit multiple oxidation states and display Metallic and Covalent bonding properties in both aqueous solutions and solid crystalline structures. As such, like aluminum, they are often extracted and stored as oxides of various grades and coarseness as specified by the buyer purchasing the Rare Earth Metals.

The also possess catalytic properties that make them great for Process Chemical Engineering Reactions as well as Electronics manufacturing as can be seen by the Rare Earths List in Wikipedia, thereby directly powering the Mobile Computing Revolution as stated in my Geezam blog article entitled “How the Apple iPad killed Ultrabooks, Printing and the Mouse as the World Rediscovers Tablets”. The Infographic below should also shed some light on how important Rare Earth Metals are to the Consumer Electronics Industry.

As a consequence Mining them is easy if you know how to identify them via chemical assay methods. Rare Earth Metal extractions is somewhat similar to those used at JAMALCO  in the Precipitation Department to precipitate and separate heavier Sodium Alumina Tri-Hydrate Crystals via gravity to be calcined (heated at high temperatures) in the Calcination Department to make the final Alumina powder for export.

Rare Earth Mining Methods mostly involving gravitational Mining methods using Centrifuges and Precipitation Tanks. The difference is that in Rare Earth mining, it’s the head of the Green liquor that’s creamed off that contains the Rare Earth Minerals.

This is formed by Molycorp combining a chemical with the slurry of material that causes it to precipitate out of the mixture and rise up to the top as described in “Digging for rare earths: The mines where iPhones are born”, published September 26, 2012 12:00 AM PDT by Jay Greene, CNET News.  Very much like cream curdles or whey involved in the making of Cheese; the heavier precipitate, consisting of 95% of the Green Liquor, settles to the bottom of their Precipitation Tanks.

If you’ve endured reading thus far, you’d realize that this is not my first article on Rare Earth Metals. Neither will it be my last as evidenced by these blog articles on Rare Earth Metals and their connection to Alternative Energy:

1.      Alternative Energy and Rare Earth Metals - Allan Quatermain and King Solomon's Mines

2.      Alternative Energy and Rare Earth Metals Recycling - Pass it on

3.      Alternative Energy and Rare Earth Metals - GoldFinger

 Their usefulness is in the manufacture of everything that’s Electronic, from LED/LCD Displays, Batteries, Electronics as noted in yet another editorial entitled “Time for innovative and enterprising thinking”, published Sunday, January 20, 2013, The Jamaica Observer. The continued development of All-Electric Vehicles as noted in my Geezam blog article entitled “The American Race towards Alternative Energy” is also another reason why this discovery’s so important.

Now that this opportunity has fallen into our laps, quite by happenstance, it now draws us in the Diplomatic World of Rare Earth Metals politics. This discovery, albeit a big potential money earner for Jamaica in effect this pits us against China, signaling possible negative fallout should the Chinese Government perceive this in a negative light.

But if the GOJ’s planning to go ahead and mine Rare Earth Metals and Gold, be reminded of one thing: There’s a lot of it that can be easily be extracted from old Electronics Gadgets that stockpile our Landfills as argued in my blog article entitled “NSWMA can benefit from coming Lithium Demand from All-Electric Vehicle - The Beverly Hillbillies go Electric”.

Japan’s Nippon Light Metal Company Limited will rescue the Bauxite Industry via making revenue from the Value added commodity that is now Red mud Waste left over from the less profitable Bauxite production. Jamaica on the other hand, via Recycling, needs to rescue ourselves from the ever increasing sea of Electronic Waste with help from the Telecom Providers.

Electronics Waste Recycling has a potential for generating revenue via Recycling as noted in my Geezam blog article entitled “How American and Canadian investors Plan to make money from the US$10 million Trade in Plastics and other Recyclables in Jamaica” and my blog article entitled “Panther Corporation of Canada sets up solar Powered Recycling Center - Investing in The Apparition of Jamaica's Waste Management Problem”.

Getting the Telecom Providers to have customers return their old Cellphones, chargers and Batteries with attractive offers in terms of an exchange for a better smartphone would be a Jack Reacher (2012) start towards recycling gadgets for their Rare Earth Elements.