• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 14 mins Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 56 mins U.S. Withdraws From U.N. Human Rights Council
  • 15 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 33 mins Gazprom Exports to EU Hit Record
  • 11 hours "The Gasoline Car Is a Car With a Future"
  • 7 hours Saudi Arabia turns to solar
  • 5 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 19 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 56 mins OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 9 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 9 hours What If Canada Had Wind and Not Oilsands?
  • 19 hours WE Solutions plans to print cars
  • 12 hours EVs Could Help Coal Demand
  • 1 day Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
Azerbaijan’s Pipeline Conundrum

Azerbaijan’s Pipeline Conundrum

Azerbaijan’s European pipeline project is…

OPEC Confident Global Oil Demand Will Stay Strong

OPEC Confident Global Oil Demand Will Stay Strong

The OPEC technical panel has…

Russia Attempts to Loosen China’s Grip on the Global Rare Earth Industry

ICT Group, controlled by Russian tycoon Alexander Nesis and state-owned corporation Rostec has reached a $1 billion deal to develop the Tomtor rare metals deposit in the far east of Russia.

Russian business newspaper Kommersant reports with 154 million tonnes of ore containing 6.71% of niobium oxide, 0.6% of yttrium, 0.048% of scandium and 9.53% of terbium, Tomtor can be considered a unique and potentially the biggest undeveloped deposit of rare metal and REEs worldwide.

ICT Group will own a controlling 50% in the venture in the remote Sakha (Yakutia) Republic while Rostec will control 25%. The rest of shares will be allocated to a yet to be determined investment fund.

Joint venture partners plan to invest at least $1 billion and it is understood that ICT-Rostec will also take control of the 82,000 tonnes of REE-containing monazite concentrate that has been stored in warehouses in Krasnoufimsk – the city in the Ural region of Russia – since the Soviet era.

Related article: Energy Optimists Belief in Abundant Oil is Harming Clean Energy Chances

The partners will also construct a hydrometallurgical processing plant with production capacity of 4,500 tonnes of ferroniobium and 10,000 tonnes of rare earth oxides per year.

The construction of processing plant will be commissioned this year and is expected to be finished by 2017.

Molycorp (NYSE:MCP) in the US and Australia’s Lynas Corporation (ASX:LYC) have had modest success in their attempts to loosen China’s grip on the global rare earth industry so far.

The scale and size of the project plus the market moving potential of the warehoused REEs make Tomtor a potentially much bigger threat to China which still controls 95% of the global production of REEs.

By. Vladimir Basov



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News