Issue link: http://resourceworld.uberflip.com/i/99312
take a supply source out of the market and help underpin prices. RARE EARTHS AND RARE METALS The past year was notable for the US, EU and Japan bringing a trade case against China for alleged state manipulation of the rare earth elements (REEs) market. The WTO's investigation is still on-going at the time of writing. REEs are vital for the manufacture of high-tech goods, including smartphones, computers and hybrid cars. The trade case centres on China's neartotal domination of the market (about 97%) and its imposition of stringent export quotas. Only 6,409 tonnes of REEs were exported in the first seven months of 2012, according to Chinese customs figures. Despite these advantages, China's producers had a lacklustre year because of the economic dip and its domestic effects, Asahi Shimbun reported on October 31. Output has been cut in the hope that REE prices will be supported. China has also used the export of REEs as leverage against Japan during the disputes surrounding the Senkaku/Diaoyu Islands in the South China Sea. This action has propelled Japanese manufacturers to seek out other avenues of supply. Given the importance of rare earths and rare metals in defense technologies, it has also urged the US to consider new supply sources, including from within its own domestic potential. BFL MAKES A DIFFERENCE Prospectors Rock! NEW Exclusive Insurance Package Tailored just for Rockers! •ExclusivelyAvailablefromBFLCANADA •BroaderCoverage–DesignedforExplorationRisks! – Property – Liability – Kidnap&Ransom – Directors&OfficersLiability&More •MuchLowerPremiums! •ExperiencedStaffintheMining&ExplorationIndustry! •InternationalExposuresCovered! •SuperiorServiceCommitment! Contact Us for a Quote: Vancouver: Montreal: Toronto: JanetMcLean LisaGiannone SeanHurley 778-331-8636 514-905-4318 416-849-3097 www.BFLCANADA.ca Halifax|Quebec|Montreal|Ottawa|Toronto|Winnipeg|Calgary|Kelowna|Vancouver COAL Coal's performance over the past year has been middling to say the least; spot prices to China and India have been subdued. Large inventories of both thermal and metallurgical (coking) coal are partly to blame and have weighed on the market. Most of the supply overhang in H2 2012 can be attributed to the economic dip, according to Credit Suisse. For Q4 Australian thermal coal prices fell to $80/t and hard coking coal to $170/t, the Financial Times reported on November 2. Longer-term, China and India will require greater volumes of energy coal as a comparatively cheap and widely-available material to fuel their growing energy requirements. Even now, China still relies on coal for 80% DECEMBER 2012/JANUARY 2013 www.resourceworld.com 11