Friday, September 7, 2012

India To Increase Rare-Earth Mineral Production

India is estimated to have the third largest rare-earth mineral
reserves in the world, but current does very little production.
Wall Street Journal (NEW DELHI) -- Recognizing economic opportunity resulting from China allegedly restricting rare-earth exports, India announced their intentions to boost their exports of rare earth minerals in order to meet global demand. Rare Earth Ltd., owned by the Indian government, is building a new rare-earth processing plant as preparation for increased output in the state of Orissa with operations expected to begin in September. Additionally, the government is seeking to mine rare earth from the seabed off the southern coast of the country in an industrial scale. It is estimated that India has 3.1 million metric tons of rare-earth reserves. Despite these efforts, concerns over corruption and red tape in the Indian mining industry, investments may be hindered. The United States, Malaysia, and Australia also recently announced plans to increase rare-earth mining efforts. Due to the increase in prices globally, nations are searching for additional places to source these minerals from in order to offset rising costs. Source: India Bets on Rare-Earth Minerals (Reliability: Medium)

Comment: As the Sino-India relationship becomes more complicated, the decision to increase rare-earth mineral output by India is likely strategic, as it will decrease their dependency on China for rare-earth while improving their overall economic standing.

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