NOW READ OUR ARTICLES IN 40 DIFFERENT LANGUAGES.
WEEKLY ONLINE NEWS STORY
You are receiving this weekly newsletter at no additional cost as part of your subscription to Petroleum News. If you do not want to receive this newsletter, email Shane Lasley at [email protected] to be removed from the list.

April 03, 2014 --- Vol. 08, No. 14April 2014

A small dose of rare earths goes a long way in North America

While mining and processing of rare earths is a relatively small sector of North America’s economy, the metals extracted in this burgeoning area are vital to a vast number of industries seeking to make things smaller, lighter, greener and more efficient. This, according to “The Economic Benefits of the North American Rare Earths Industry,” a report prepared by the Rare Earth Technology Alliance and American Chemistry Council.

“Addressing the growth and diversification of the rare earth sector is critical to our economy because of the essential nature of rare earths,” said Pierre Neatby, chairman of the Rare Earth Technology Alliance, upon the April 2 release of the report. “Billions of individual products from a myriad of product lines contain rare earth elements. Rare earth elements are vital to many modern industries including chemicals, consumer electronics, clean energy, transportation, health care, aviation and defense.”

The upstream portion of the rare earth supply chain represents a US$795 million business in North America.

With the resumption of mining rare earths at Molycorp’s Mountain Pass operation in California, rare earth mining in North America generates annual revenues of US$250 million. The separation, processing and chemicals derived from rare earths account for the remaining C$545 million of revenues attributed to the upstream sector.

When you calculate in the indirect and induced effects, the upstream portion of the rare earths supply chain in North America generates US$1.93 billion in output in the economy and 6,335 jobs with a payroll of $422 million.

These rare earths are then used to improve the performance of a number of intermediate products such as magnets, metals, glass, ceramics and batteries. These, in turn, are used by the automotive, green technology, defense, electronic, health care and a number of other industries.

“Our analysis illustrates the extensive role and support that rare earth products have provided and can continue to provide to the broader North American economy,” said Dr. Kevin Swift, chief economist and managing director of the American Chemistry Council. “Even though the rare earth industry is still growing in the U.S. and Canada, its contributions are vastly significant.”

All told, the report finds that the rare earth industry is supportive of US$329.6 billion in economic output in downstream end-market products and technologies that employ 618,800 workers with a combined payroll of US$37.6 billion in the United States and Canada.

Rare Earth Technology Alliance represents a coalition of rare earth producers and processors; manufacturing companies that rely on rare earths for their products and technologies; and academic and research leaders in the rare earth sector.

The members of RETA are: Arnold Magnetic Technologies; Avalon Rare Metals; Colorado School of Mines; Ford Motor Company; General Electric; Global Tungsten & Powders; Iowa State University; Knowles Electronics; Molycorp; Montana Tech; Rare Element Resources; ReNew Rare Earth; Solvay (Rhodia) and W.R. Grace.

The American Chemistry Council represents the leading companies engaged in the business of chemistry, a US$770 billion enterprise in the United States.


Did you find this article interesting? Email it to an associate.
Print this story

Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.MiningNewsNorth.com
S U B S C R I B E