Mountain Pass thumb

Troubled mine holds hope for U.S. rare earth industry

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Monday, October 25, 2010 at 6:00 am

The Mountain Pass Mine in California, which closed in 2002, is considered the country's best hope to combat China's trade dominance in rare earth elements. (WikiCommons)

In 1949, two geologists found what they suspected to be a massive uranium deposit in the desert of southeastern California, about an hour’s drive from Las Vegas. A cache of uranium would have been an incredibly lucrative find, but the geologists were disappointed when further testing revealed the area to be full of deposits of rare earth elements.

[Environment1] Rare earth elements, also called rare earth minerals, were thought to be virtually worthless. For the most part, the REEs, obscure elements with names like Promethium and Europium, had no practical use.

But the geologists saw potential in REEs and convinced the Molybdenum Corporation of America to buy the mining rights to the 222 acres of land that would later become known as the Mountain Pass Mine. The decision to mine that land, once considered a gamble, is now paying off in a big, big way.

During the last 60 years, the company, which became known as Molycorp, developed thousands of uses for REEs, jump-starting a worldwide race to mine the minerals and landing the company squarely in the middle of a trade face-off between the United States and China.

Amid new fears about the United States’ dependence on China for its REEs, politicians are calling for the U.S. to develop its own REE resources. Attention has shifted back to Molycorp and its Mountain Pass Mine, considered by many experts to be the country’s best hope to compete with China. But the Mountain Pass Mine closed down in 2002 amid a series of waste water spills that dumped radioactive materials all over Mountain Pass. Now, the company, which is planning to reopen the mine amid big claims about its potential to meet the country’s REE demand, must prove that it can clean up its act.

Through the early 1970s, Mountain Pass was the world’s largest REE supplier. “They were unchallenged in the world as suppliers of this material until the Chinese discovered that they had a large amount of this stuff as a byproduct of iron deposits,” said Bill Bird, president of Medallion Resources, an REE exploration company.

But China soon began to realize its REE potential. In the 1980s and 1990s, China doubled down on a strategic effort to become the world’s REE superpower. In 1992, Deng Xiaoping, head of the country’s Communist Party, famously said, “The Middle East has oil, China has rare earths.”

The effort paid off. China now corners the market on REEs, controlling an estimated 97 percent of the world’s production. And the market is huge — and growing. REEs are used in everyday consumer goods like DVD players, cell phones and televisions; they are found in satellite communication devices and the military’s smart bombs; and they are key components of clean energy technology like wind turbines and electric vehicles.

Trade experts have long raised concerns about China’s control over the world’s REE supply. Those concerns reached a fever pitch last week when The New York Times reported that China was blocking shipments of REEs to the United States. The report came just days after the Obama administration announced it would investigate the country’s green tech trade practices.

By the mid-1990s, the Mountain Pass Mine was feeling the weight of China’s REE exploits. China had developed its own resources and was exporting REEs at prices that the company couldn’t match. “The Chinese started producing rare earth elements, and China being what it is, they were able to produce them very cheaply,” Bird said.

On top of that, the Mountain Pass Mine came under fire from state and federal regulators for a series of mine waste spills. Over the course of ten years, thousands of gallons of waste from the Mountain Pass Mine spilled from holding ponds and waste pipelines, according to reports. The waste included thorium, a radioactive byproduct of REE mining.

Mining at Mountain Pass stopped soon after the spills came to light. Industry sources say Union Oil of California, which bought Molycorp in 1977, couldn’t afford to comply with environmental rules and felt that it couldn’t compete with China. In 2002, the company did not renew a permit to store tailing, the uranium and thorium waste that is a byproduct of REE mining, and the Mountain Pass Mine shut down.

“The economics wasn’t there because China had ramped up its production and was aggressively mining,” said Molycorp spokesman Jim Sims.

One industry veteran said the spill will cost oil giant Chevron — which bought Molycorp from Union Oil of California in 2005 — an estimated $185 million to clean up. The official called the mine’s poor environmental record “legendary.”

Confronted with China’s REE dominance and questions about its environmental record, Molycorp worked during the next several years to reopen the mine and develop a cheaper and more efficient way to remove and isolate REEs. The chemical separation process, which extracts the valuable REEs, is the most expensive and environmentally risky part of REE mining.

With a new and cheaper separation process, Molycorp, which became the sole owner of the mine in 2008, is hoping to break ground on the new REE separation facility in January. The “near-zero emissions” facility will recycle the waste water produced from the process, as well as many of the chemicals necessary to separate out the REEs, Sims said.

“The new facility incorporating these new environmental technologies will produce rare earths at a cost-per-pound that is one half of the Chinese,” Sims said, adding that the company hopes to begin mining again at Mountain Pass in 2012. Sims says the mine will produce 20,000 tons of REE-equivalent each year, more than the current U.S. demand of between 15,000 and 18,000 tons per year.

“We’ll be in a position of virtual independence,” Sims said, though he noted that the company will also sell REEs overseas.

But the industry veteran, who requested anonymity, raised questions about whether Molycorp could meet its timeline for beginning operations. “They’ve been saying it’s six months off since 2007,” the industry veteran says.

Given the recent reports about China, there is more pressure than ever on the United States to develop home-grown REE resources. Experts say U.S. rare earth demand is certain to balloon in the coming years, as plug-in hybrid electric vehicles become cheaper and wind turbines begin to pop up all over the country. One turbine can require as much as a ton of REEs.

“We’re becoming dependent on these things for the economy to keep going,” said Jim Hedrick, an REE consultant. “As people are learning more about the rare earths, more and more chemists and biologists are finding new uses for them.”

Hedrick believes the U.S. is too reliant on rare earths to not develop a domestic REE industry. “If you pull rare earths out of the equation, then you’ll cause a lot of disruption,” he said.

Despite Molycorp’s goals, experts suggest that it will take many years to develop a U.S. REE industry. Yaron Vorona, executive director of the Institute for the Analysis of Global Security’s Technology and Rare Earth Metals Center, cited an April 2010 Government Accountability Office report that says it could take 15 years to develop a U.S. rare earth industry.

Vorona says the U.S. has a lack of scientific knowledge about REEs because most scientists went to China to continue their work on the minerals decades ago. “If the mines that are being planned were all to come online tomorrow that would be fantastic, but there would be nobody to run them,” Vorona said, noting that China has 100,000 rare earth scientists.

He also said that chemical separation of REEs is often very difficult to perfect. “It’s a very long and involved process,” he says. “That’s one of the biggest risks. It can take dozens, hundreds of steps to separate the rare earths.”

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triathlon
Comment posted November 4, 2010 @ 9:29 pm

BRIBING SOUTHEAST ASIA

[HANDING OUT BRIBES]

Two articles you may want to take a gander at today were written on Japanese sites, (http://www.japantimes.co.jp) [U.S.-backed Pacific FTA to be 'pathway' at [APEC] ]or Super Debtor American-Israeli Military Industrial Complex backs plans for a [FTA] Free Trade Agreement to be road to more jobs shipped out of the Super Debtor Nation, at [APEC] Asian Pacific Economic Conference to be held in Yokohama, Japan on November [13th & 14th], you can just feel the draft as more jobs follow the path of the jobs that were lost by [NAFTA] The North American Free Trade Agreement, and American Workers all know how that worked out. And the other site is (http://www.japanupdate.com), [Okinawa, mainland cities, [JSDF] get new funding], or a bribe is sent to Okinawa, mainland cities, by giving the [JSDF] Japanese Self Defense Force, more money to spend in Okinawa, a lot more [€0.031T/ ¥33.54T] Point-Zero-Thirty-One Trillion Euros/Thirty-Three-Point-Five-Four Trillion Yen , to offset the [Extortion Tax] paid by the Japanese taxpayers to keep the burden of the Super Debtor American-Israeli Military Industrial Complex forces of occupation, and its [200+] Two-Hundred plus, illegal nuclear weapons on the Island of Okinawa, and off the Japanese mainland, leaving the burden of it all on the [2nd] Class Japanese citizens of Okinawa, if the Tokyo Central Government even considers them Japanese citizens, the people of Okinawa are starting to believe the Central Government in Tokyo doesn’t.

[Southeast Asian Spheres of Economic Influence]

What is happening is the Footholds of both Germany and Japan are slipping away from the Super Debtor American-Israeli Military Industrial Complex, [20th] Century Cold War strategy giving way to the [21st] Century Spheres of Economic Influence, which are; [BRIC] The Brazilian, Russian Federation, India, and The Peoples Republic of China, [APEC] The Asian Pacific Economic Conference of nations, representing the [FTAAP] Free Trade Area of the Asia Pacific, community of nations, within the [ASEAN] Association of South East Asian Nations, which was made up of [10] Ten member nations, but has expanded to [16] Sixteen nations with the addition of Japan, The Peoples Republic of China, The Republic of South Korea, Australia, India and New Zealand, and then there is the [TPP] Trans-Pacific Partnership Agreement which is a [FTA] Free Trade Agreement Organization made up of Brunei, Chile, New Zealand, and Singapore, which Australia and the Super Debtor American-Israeli Military Industrial Complex are looking for a foot into, as the Israeli part of the Military Complex seeks a foothold into the [BRIC] thru India.

[The Doggie Do-Do]

This is a late effort by the Super Debtor American-Israeli Military Industrial Complex to get into the game Sphere of the [PAC-RIM] Pacific Ring of Fire Economic Spheres of Influence, what that means is the worlds Super Debtor wants to show how it can still play with its main Creditor Nations, as the Big Dog, and that means what, a bright, bright sunshine day? No! What that means is the price of food will go up in the Super Debtor Nation, as agricultural products are shipped out of that country to the Southeast Asian Countries, they sure don’t want the Junk, Garbage and over priced manufactured items of the Super Debtor American-Israeli Military Industrial Complex when quality items are being shipped from Europe to the Far-East, and those manufactured by The Peoples Republic of China and the Republic of South Korea within the region, of higher quality and cheaper cost, and you can now feel the draft as more jobs are sucked out of Super Debtor nation to the Far-East and all of this to maintain its Foothold and [Extortion Budget] at the price of the people of Okinawa, the Japanese Tax Payer, and the Taxpayers and Workers of the Super Debtor American-Israeli Military Industrial Complex, the question will be just will this lame dog hunt, is it just chasing its own tail, will it bite its own backside, and the most important question is who ends up in the doggie do-do.

HERCULE TRIATHLON SAVINIEN


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Comment posted November 11, 2010 @ 10:16 pm

RARE EARTH AND [TPP]

Question [1] what the blazes is Rare Earth?

And the immediate question becomes what the blazes is Rare Earth, and we didn’t know what is was either or just how rare this earth was and what in the earth the stuff was even used for so we looked it up on (en.wikipedia.org.) under Rare Earth Element, and did we get a surprise, this stuff, Rare Earth is made up of [17] Seventeen elements that are Rare across the globe with the exception of the Peoples Republic of China, which has no less than [97%] Ninety-Seven Percent of the earth’s Rare Earth, and if your really interested in what these elements are and their atomic numbers and, how they got their names [Scientists name things after what they found] , let your computer fingers do the walking, the thing is they got some pretty important uses; Russian Federation [MIG-29] Fighter Plane parts are made from this stuff, high-temperature superconductors, high refractive index glass, [X-Ray lenses], flint, hydrogen storage, battery-electrodes, camera lenses, fluid catalytic cracking catalyst for oil refineries [makes oil into gasoline, petroleum], dyes, explosives, magnets, lasers, nuclear batteries, [self cleaning ovens for She Who Must Be Obeyed], thermonuclear reactions [ [WMD] Weapons of Mass Destruction the Atomic Bomb, and reactors that fuel Trident Nuclear Submarines], Fluorescent lamp [the one’s you replace in the kitchen and bathroom for She Who Must Be Obeyed], high speed tool steel [Steel used to cut other steel in machine shops to produce machines that make everything basically], pretty impressive stuff.

Question [2] what is [TPP]?

The answer is that [TPP] stands for the Trans-Pacific Partnership Agreement (TPP), which is yet to be even voted upon by Washington, D.C. District of Clowns/Comedians, Imperial Court, all the while as and we quote from the (www.japantimes.co.jp), article [U.S. commerce chief praises TPP interest], by its Staff writer Masami Ito, Quote, [U.S.] or The American-Israeli Military Industrial Complex, Secretary of Commerce Gary Locke ["The objectives of the TPP are to try to remove access barriers, and that would enable the economies of the participating countries to sell more to each other and engage in mutually beneficial trade that could create jobs for people among all of the participating countries,"] Unquote, which is viewed by Japan as one pathway towards an Asian regional wide free-trade area within the [ASEAN] the Association of South East Asian Nations, of [10] ten present member nations, into which [6] additional nations are now seeking membership [Japan, The Peoples Republic of China, The Republic of South Korea, Australia, India, and New Zealand], but the American-Israeli Military Industrial Complex wants to horn in on the fun with a grand plan for a [FTAAP] Free Trade Area of the Asian Pacific, and all this is being taken under consideration at the [APEC] Asian Pacific Economic Cooperation forum, are you lost yet in all these [ABC’s], it’s pretty simple, you go to The Asian Pacific Economic Cooperation forum to sit down to talk to the Association of South East Asian Nations, as [6] six nations ask to be in the membership, at the same time take about creating a Trans-Pacific Partnership Agreement, with the American-Israeli Military Industrial Complex, which includes a Free Trade Area of the Asian Pacific all of which no one really wants and no country as any real authorization from its government to approve of or create, you go thru all these [ABC’s] to arrive at the math solution of [Zero].

Kicking the can toward [2012]

In all truth nothing is going to happen of any particular importance as the word being bantered about across the globe concerning the American-Israeli Military Industrial Complex is Gridlock, after the past election cycle in that country. And, considering that in only a few more months the second election cycle will in fact be gathering its momentum, for the White House and Oval Office seat, well it doesn’t take a genius to see that Gridlock pretty much covers what will be happening over the next [2] two years/[24] twenty four months, and one can debate if that is good or bad, taking a positive spin on it, the less the American-Israeli Imperial Complex can do at this juncture in history the better it is for the rest of the global community of nations, that is with one exception and that is its Federal Reserve, [IMF] International Monetary Fund, and World Bank in New York City printing more and more worthless currency, with its promise of a World War of Currency Devaluation. In the end Rare Earth will remain in a Rare State, and math will over-ride the alphabet in importance giving the [ZERO] balance of accomplishments or Gridlock expected, its more fun watching Max on Dancing With the Stars, that Russian, can tell it like it is, the Italian Gay Judge, the Old Brit, and Female Oriental better take their paddles and comments and duck and cover under their desks, Max is using the Nuclear Option.

HERCULE TRIATHLON SAVINIEN


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