JBI and Rare Earth Extraction - Why Nippon Light Metals recanted and JBI Rare Earth Plant can jumpstart Electronics Industry

Rare Earth Metals remain a Pipe Dream it seems

The initial investor, Japan’s Nippon Light Metals, had pulled out due to the falling value of Rare Earth Metals on the global Mercantile Exchanges aster spending some US$600 million on building a Pilot Test Plant as reported in my blog article entitled “US$600 million later Japan’s Nippon Light Metals shelves Jamaica Rare Earth Test Pilot Plant - Cheaper Electricity needed as FDI’s want in Copper and Gold”.

Now, the situation has not improved as Minister of Science, Technology, Energy and Mining Phillip Paulwell had revealed during questioning by Opposition spokesman on Finance Audley Shaw on Tuesday March 3^rd 2015 that Nippon Light Metals was not interested in commercializing the Pilot plant as reported in the article “Rare-earth metal project in limbo”, Published Thursday March 5, 2015, The Jamaica Gleaner.

The Test Pilot Project that was being done jointly with the JBI (Jamaica Bauxite Institute) ended with the feasibility of the patent-pending process being determined a success. So much so that the GOJ, via the JBI and Nippon Light Metals had jointly applied for a patent on the process which would be equally shared 50-50 between the two (2) entities in October 2014.

As a part of this agreement, the JBI (Jamaica Bauxite Institute) got full ownership of the Test Pilot Plant as reported in the article “Exploitation of mineral resources remains critical policy objective”, published Monday, February 23, 2015 by Allan BROOKS, The Jamaica Observer.

So why did Nippon Light Metals decided to step away from what could have been a very lucrative venture for them? It’s all about the Benjamin’s baby!

Nippon Light Metals and the Rare Earth Pilot Plant - Why they did not commercialize and why JBI now owns a Rare Earth Plant and Patents

So Nippon Light Metals decision not to commercialize after spending nearly US$600 on a Test Pilot Plant built on the property of the JBI.

Initially, they came to Jamaica because China, who possesses 97% of natural reserves of Rare Earth Metals, was blocking exports to Japan 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”.

The American began to restart domestic extraction of Rare Earth Metals. combined with the find by the USGS (United States Geological Survey) of US$1 trillion worth of Rare Earth Metal deposits in Afghanistan in the years 2006 and then 2010 as reported in the article “US$1 Trillion Trove of Rare Minerals Revealed Under Afghanistan”, published September 04, 2014 07:35am ET by Charles Q. Choi, LiveScience, this resulted in a glut on the world market.

So when the WTO (World Trade Organization) finally stepped in and forced the Chinese to resume exports and end quotas as reported in  “China scraps quotas on rare earths after WTO complaint”, published Monday 5 January 2015 08.10 GMT, The UK Guardian and “China scraps quotas on rare earths after WTO complaint”, published 5 January 2015, BBC News the resulting excess resulted in a glut sometime in 2014.

Prices fell from US$6.50 per kg to US$7,000 per kg to much lower as pointed out in my blog article entitled “US$600 million later Japan’s Nippon Light Metals shelves Jamaica Rare Earth Test Pilot Plant - Cheaper Electricity needed as FDI’s want in Copper and Gold”.

Thus the Nippon Light Metals decided it not wise to pursue their extraction, as it would prove to be uneconomical in the long run now that everybody was producing Rare Earth Metals. This is the same thing that’s happening n the Oil Industry; a glut of Oil thanks to the US of A Production related to “Fracking” as noted in my blog article entitled “Lower Oil Prices Good for Jamaica - How All-Electric Vehicles Sales benefit as Electricity Prices trend lower”.

They signed a Termination agreement with the GOJ in October 2014 and formally handed over full ownership of the plant to the JBI as noted in the article “Exploitation of mineral resources remains critical policy objective”, published Monday, February 23, 2015 by Allan BROOKS, The Jamaica Observer.

In short, Jamaica owns a Rare Earth Test Pilot Plant a well as some patents on the Process to extract Rare Earth Metals from RDA (Residue Disposal Area) Mud, a waste process from Bauxite mining.

So why is this still a good opportunity for Jamaica?

JBI and Rare Earth Extraction - Jamaica can license patents and also make Rare Earths for local Electronics Industry

Despite the concerns of environmentalist Peter Espeut, there are no known environmental hazards associated with the Extraction of Rare Earth Metals from RDA Red Mud.

The processing that the bauxite went through means that the Red Mud actually contains a lot of suspended solids in their oxide state, merely needing a Strong Acid and some centrifugation as explained in detail 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”.

I know this as Chairman of the JBI (Jamaica Bauxite Institute), Dr. Parris Lyew-Ayee, explained the process in a manner even a 3^rd form Chemistry Student could figure out as pointed out 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”.

It's no secret and hence the reason why patents are being jointly applied for by the JBI and Nippon Light Metal Company Limited to protect our intellectual Property.

Despite the rantings of The Jamaica Gleaner Editor about possible environmental problems due to JBI Chairman, Dr. Parris Lyew-Ayee stating there was no need to have public consultation to initial built the Test Pilot Plant as noted in the article “No public consultation on rare minerals pilot plant construction”, Published Sunday February 10, 2013, The Editor, The Jamaica Gleaner, there is nothing to hide.

Merely Intellectual property to safeguard and protect.

Hopefully with the technical support that we'll continue receiving from the Nippon Light Metal Company Limited, the JBI can eventually turn its technology to wards extracting Rare Earth Metals from our seabeds as noted in the article entitled “Hidden in plain sight”, published Monday, July 14, 2014 BY KIMONE THOMPSON Associate editor, The Jamaica Observer.

These Seabeds within our territorial waters are rich in gold, copper, nickel, cobalt, manganese and rare earth minerals. Given their predicted level of abundance, they can also be the basis for VAP (Value Added Products) e.g. LED (Light Emitting Diode) bulbs, Cellphone Batteries.

It may even form the basis for Jamaica’s own Electronics Manufacturing Industry as predicted 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”.

Mining of Jamaica's Mineral Resources under the Sea would mean that if the Prices for Rare Earth Metals return to the US$6.50 per kg to US$7,000 per kg levels, Rare Earth Metals may be more valuable than Oil in the long run.