July 22, 2010
TSXv - TSM; Frankfurt - T61 (WKN A0Y GN1); Pinksheets – TASXF
"The Tasman Metals Rare Earth Story"
TASMAN COMMENTS ON RECENT REDUCTION IN CHINESE RARE EARTH ELEMENT EXPORT QUOTAS
Chinese REE Export Quotas for the second half of 2010 have been substantially reduced and fall by 40%
- Restrictions on the supply of metals so vital to expanding high-tech and green-tech industries, increases the likelihood of alternative supply sources being established outside China;
- Tasman’s portfolio of heavy REE projects in the politically stable, mining friendly jurisdictions of Sweden and Finland has potential to provide one of these supply alternatives, in particular for the European region.
"While some export volume reduction was anticipated, the magnitude of this tightening of supply from China is a significant market signal.
When viewed with other recent Chinese announcements regarding a proposed REE price control mechanism, and a clamp down on black market selling of REE’s, there are a number of factors acting in concert to push prices higher. The price of dysprosium (Dy), Tasman’s main REE by value in our 100% owned Norra Karr project, has moved up more than 100% since January 2010, and with such supply pressure in place we expect prices to remain high.”
14 minerals are on the “the critical supply list” of the European Union. China controls the market and is shifting its policies. It has already partially put in place high export restrictions and quotas. Right now, the end-users are beholding to China for their REE inputs. Multinationals are fast running out of options as China centralizes REE supply control.
For the EU economic growth is a must and Tasman certainly is well positioned and stands to profit from the supply side demand and threatened shortage of these STRATEGIC METALS.
LREE light rare earth elements, lanthanum to samarium by atomic weight
HREE heavy rare earth elements, europium to lutetium plus yttrium
TREO rare earth elements, calculated as oxides, including lanthanum to
lutetium plus yttrium
HREO heavy rare earth elements, as per HREE above, calculated as oxides
LREO light rare earth elements, as per LREE above, calculated as oxides
For more TASMAN information contact
Mining Interactive Corp.
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|Nick L. Nicolaas |