Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 - Rev. 0
19-4
more weighted in the critical rare earths more susceptible to supply disruption. There
is limited production of rare earths reported from a few other countries in the world,
including Brazil, India, Russia and Vietnam.
There are many other rare earths prospects in the world that are reported to be
moving toward development and production, but in the current constrained capital
market for junior mining companies, and with the low rare earth pricing environment, it
is hard to predict how many of these projects will reach operation. The successful
developments will likely be determined by several of the following factors:
Project sponsors’ abilities to attract off-take customers willing to support
development with long-term purchase commitments at floor prices;
Proven processing capability to include thorium removal, and firm contractual
arrangements for elemental separation of rare earths;
Concrete plans and licensing, if necessary, to separate, handle and dispose of
radionuclides (i.e., thorium and uranium) safely; and
Potential explicit or implicit governmental support to assure the development
and maintenance of a total supply chain for rare earths outside of China;
The impact of geopolitical factors or very remote locations for most of these
projects.
19.3 Demand
Demand for rare earths is driven by applications that rely on the unique magnetic,
phosphorescent and catalytic characteristics of these elements. These materials
have been called the “seeds of modern technology” by the Japanese and find many
of their uses in consumer and specialized high-technology applications, including
hybrid and electric cars, cellphones, wind turbines, energy-efficient lighting, speakers,
lasers, medical imaging and other medical devices and high-tech defense
applications. According to the Industrial Minerals Company of Australia (IMCOA), a
well-known non-Chinese source of rare earths statistics and information, global
demand for rare earths in 2013 was 115,000 tonnes with China accounting for
approximately two-thirds (77,500 tonnes) of that. The balance of demand was
estimated to come from Japan and NE Asia (mainly South Korea) – 16,000 tonnes, or
14%; the United States – 15,250 tonnes, or 13%; and Western Europe and other
regions – 6,250 tonnes, or 5%. With the continuing rapid evolution of technology and
the anticipated growth of the so-called “green economy”, estimates for global rare
earths demand growth are generally robust with consensus estimates in the 7%-10%
per annum range.
