Even North Korea is eager to get in on the rare earth elements act, in large part because it?s keen to attract foreign currencies amid soaring prices for the minerals, Japan?s daily newspaper Asahi Shimbum reports (http://goo.gl/jKGh6).
But even the secretive and insular country can?t fully escape China?s grip on the global REE sector; North Korea relies on Beijing to finance the development and production of rare earth elements, the newspaper reports.
North Korean leader Kim Jong-il - described by state-run media as a high-profile statesman celebrated the world over with films and festivals every year on his birthday ? is reportedly paying close attention to the nascent industry?s development.
State-run Korean Central News Agency, the Minju Choson (Democratic Korea), the official government newspaper, has recently reported that the country has been stepping up efforts to develop REEs, with mining and exploring under way at several sites. It said scientists are actively developing ways to use the minerals.
"The effective usage of rare earths has a significant meaning in terms of building an economic powerhouse," one senior official at the country?s National Resources Ministry told the government newspaper.
The Chosun Sinbo, the newspaper of Tokyo?s General Association of Korean Residents in Japan (Chongryon), has also reported on developments, saying North Korea has discovered REE deposits of about 20m tonnes.
Choi Kyung-soo, who heads North Korea Resources Institute, said North Korean officials showed strong interest in the minerals at a meeting of experts held in Beijing last September. He reckons the country has deposits of more than 17 million tonnes but has yet to begin full exploration or purity and feasibility studies.
This latest rare earth overture by North Korea comes two years after Kim visited a RE processing plant in Hamhung, a city on the country?s east coast. At the time, he stressed the need to produce more REEs.
The country built the Hamhung processing plant in 1990 but hasn?t been able to put it into full operation because of power and supply shortages.
The country's rare metal exports to China stood at $16 million in 2009, according to Dong Hwan Kim, a former University of South Australia lecturer and author of a South Korea-published book on the war to secure REEs.
Brian - Thank you for the excellent ongoing international business coverage on REEs. The line that stands out to me is: "The country built the Hamhung processing plant in 1990 but hasn?t been able to put it into full operation because of power and supply shortages."
We had Alastair Neil in the office on Thursday afternoon and his quote to me was -- "only 15% of the RE industry involves mining." The processes involved in extraction, and even the challenges that arise in the dealmaking between producers and end users are topics that we will continue to cover. Thanks again. TracyReply Saturday, August 20, 2011 at 12:
fascinating article Chucky...we Publish potashblog.com and consider fertilizer issues all the time...hmmm, thanks for the news link. Kudos.Reply Saturday, August 20, 2011 at 02:
I've had knowledge for somtime that DRK had substanial Rare Earth reserves, but by it being such a closed society, i've never been able to determine as to what kind of REE deposit/s that they have in their possesion.
maybe other readers here would have that information or would like to comment on what kind of implications this could have for China going forward, as some predict that they could become a net importer of REE as soon as 2015, particularly those of the Heavy variety and whether it could affect future Chinese investment decisons abroad as they now appear to have a ready supply of cheap Rare Earth material closer to home. in otherwords does this help to strengthen the already dominate Chinese monopoly where by they could hurt Rare Earth projects coming online in North America and Australia by once again flooding the markets with cheap REE's that they will obtain from the DKR?
ImO: No. Current near term producers in the West will get long term off-take agreements with Western manufacturing companies (e.g. Arafura-ThyssenKrupp). (Unlikely) later flooding of the market won't change the fact that at that point in time, western producers (Lynas, MCP, Alkane, Arafura and a few others) will exist and be profitable. So the Chinese monopoly is to end soon.
If you like potash, check out NPK.V. They are potentially the next POT located directly in Brazil's agricultural district.Reply Saturday, August 20, 2011 at 07:
For newer visitors to the RareMetalBlog, back in July we posted a news story about Nth Korea making large REE discoveries and their locations. By way of background to this latest news, we reported thus:
"Here?s some background courtesy of the Washington-based National Defense University. A paper by Lt. Commander Cindy A. Hurst of the United States Navy Reserve, which is essentially about Chinese rare earths, has a reference to North Korea. She recalls that in 1988 North Korea formed the Korea International Chemical Joint Venture Company to produce REE from monazite. The plant was reportedly designed to use solvent extraction technology acquired from China?s Yue Long chemical plant near Shanghai. Production began in 1991. Hurst said the monazite was said have come from the Cholsan uranium mine near Cholsan-kun in North Korea. She also mentions that, in June 2009, North Korean leader Kim Jong-Il visited the Hamhung Semiconductor Materials Factory and the Hamhung branch of North Korea?s State Academy of Sciences, where he stressed the need to boost production capacity and the need to accelerate technical updating of the factory to increase the production of rare earth metals."Reply Saturday, August 20, 2011 at 05:
Well, things might look different from a chinese perspective: if Kim doesn't play ball, they always can organize a coup / invade and install a more favorable regime ... ;-)Reply Sunday, August 21, 2011 at 09:
kinda' scary thinking that the world's most lunatic despot may be aquiring huge finacial gain from the country's natural resources. makes me wonder if the article stating that the DPRK was exchanging REE's for corn and fertilizer with China is nothing more than cover story for what North Korea may be truthfully gaining, and the instability that it could cause on the Korean peninsula, Asia or even Worldwide.
Development of raw materials is critical to China, which further supports the Seoul Gyopo Guide's claims. There are other issues to consider. First, the Chinese are likely to strike exceptionally favorable terms from North Korea, given North Korea's economic woes. It is not hard to imagine that any agreement is tied to further economic assistance from China to North Korea. Second, the question will remain on where those revenues will go. If the revenues are diverted for military development, then this would be a source of funds that could be very dangerous to the North-South Korean standoff. Third, South Korea itself could be greatly disadvantaged compared to Chinese competitors. Already, China poses a threat to certain important Korean industries. A steady supply of raw materials at below-market prices would be a great advantage for China-based corporations. Any one of the three issues may prove to be a flashpoint: the combination of all three is particularly intriguing.
Even North Korea is eager to get in on the rare earth elements act, in large part because it?s keen to attract foreign currencies amid soaring prices for the minerals, Japan?s daily newspaper Asahi Shimbum reports (http://goo.gl/jKGh6).
But even the secretive and insular country can?t fully escape China?s grip on the global REE sector; North Korea relies on Beijing to finance the development and production of rare earth elements, the newspaper reports.
North Korean leader Kim Jong-il - described by state-run media as a high-profile statesman celebrated the world over with films and festivals every year on his birthday ? is reportedly paying close attention to the nascent industry?s development.
State-run Korean Central News Agency, the Minju Choson (Democratic Korea), the official government newspaper, has recently reported that the country has been stepping up efforts to develop REEs, with mining and exploring under way at several sites. It said scientists are actively developing ways to use the minerals.
"The effective usage of rare earths has a significant meaning in terms of building an economic powerhouse," one senior official at the country?s National Resources Ministry told the government newspaper.
The Chosun Sinbo, the newspaper of Tokyo?s General Association of Korean Residents in Japan (Chongryon), has also reported on developments, saying North Korea has discovered REE deposits of about 20m tonnes.
Choi Kyung-soo, who heads North Korea Resources Institute, said North Korean officials showed strong interest in the minerals at a meeting of experts held in Beijing last September. He reckons the country has deposits of more than 17 million tonnes but has yet to begin full exploration or purity and feasibility studies.
This latest rare earth overture by North Korea comes two years after Kim visited a RE processing plant in Hamhung, a city on the country?s east coast. At the time, he stressed the need to produce more REEs.
The country built the Hamhung processing plant in 1990 but hasn?t been able to put it into full operation because of power and supply shortages.
The country's rare metal exports to China stood at $16 million in 2009, according to Dong Hwan Kim, a former University of South Australia lecturer and author of a South Korea-published book on the war to secure REEs.
