US Far Behind in Race for Arctic Assets

The United States is not look at the Arctic as an investment

BARROW, ALASKA (GLOBALPOST) - The melting of the Arctic has opened up the potential to access oil and minerals beneath the floor of the Arctic Ocean.  Economists are predicting that there could be trillions of dollars in profit in the coming decades.  Alaska Lt. Governor Mead Treadwill believes the United States in not even in competition for the race for oil and minerals in the Arctic.   Despite the profits and opportunities in the Arctic, American administrators are not utilizing the Arctic's potential.  Many international observes believe the US is failing to understand the need and importance to establish itself as a leader in the Arctic.  It will take a long time for the United States to become as active as China and Russia in the Arctic.  The US Coast Guard does not have the resources for the shipping surge or oil exploration, including ice cutters.    Source: US Far Behind in Race for Arctic Assets (Reliability: Medium)

Comments:  The ice in the Arctic Ocean has shrank to an all-time low this year due to man-made global warming.  

Arctic Region Rich In Resources, Lacking In Framework

The arctic region.

MADRID (Eurasia Review)--Arctic ice has receded more over the past decade than at any other point in history, with summer ice melts making more areas accessible than ever before. The newly-accessible areas of the Arctic hold huge amounts of oil and gas as well as massive stock of high quality gold, diamond, plutonium and other rare earth minerals. A recent CSIS study found that although some Arctic countries (such as Russia) have claimed to support international cooperation in the Arctic, they have bolstered their military presence in the region. Since the region lacks any coherent framework to address international interests and concerns, it remains a potential flash point for all countries bordering the Arctic or with interests there. Source: Restructuring Arctic Stability And Global Security - Analysis (Reliability: Medium)

Comments: With even non-Arctic groups ranging from the EU to China expressing interest in exploiting Arctic resources, Arctic countries such as the US must act quickly if they are to protect their interests in strategic minerals, oil, gas, and even fishing.

Price of Gold Soars as Investors Seek Safe Haven

People are investing more in gold because of the increased price.

AUSTRALIA (ABC NEWS) -   For most of this year, the price of gold has been around it's all time high of USD 1700 an ounce and is predicted to rise to USD 2000 in 2013.  Sources claim economic problems in the United States and Europe are causing the increase in the price of gold.  Gold is becoming a safe investment against market volatility due to the economic stimulus measures by the U.S. and Europe according to financial advisor Jordan Eliseo.  Analysts are predicting mergers and take-over bids to increase because gold miners are undervalued compared to the price of gold.  Countries are also starting to stockpile gold in order to build up their reserve currency during the tough economic times.  China in particular is a government that is known to stockpile bulk commodities and industrial related metals.  Analysts suggest this is the time to start investing in gold.       Source:  Price of Gold Soars as Investors Seek Safe Haven (Reliability: High)

Comments:  Before gold, iron ore was in the focus of Western Australia's mines.  Due to the economic times, more and more people are beginning to invest in gold instead. 

Nevada's Safe Bet On Gold

Mining operations create jobs that pay approximately
double the national average income for an individual.

LAS VEGAS (Las Vegas Review Journal) -- While Nevada is famous for its tourism, it is little known that the state makes just as much off of its mining industry. Gaming and mining bring in approximately $10 billion a year, each. Most of the money brought in from mining goes into state coffers to support many social programs. In 2011, Nevada processed approximately $24 million in gold each day, helping make the United States the third largest gold producer behind China and Australia. It is estimated that Nevada has 15 years of gold reserves left and is continuing to search for more throughout the state. Production of gold in Nevada is of critical strategic importance, as the United States strives to become less dependent on foreign countries for its minerals. Source: Nevadans Have Long Bet Their Lives, Fortunes On Mining (Reliability: High)

Comment: Nevada acknowledges that mining has its booms and busts, and so it is continually searching for new places to mine, replenishing resources, and being strategic in its operations to make the industry last well into the future.

Due To China's REM Dominance, U.S. Businesses Highly LIkely To Push For Alternative Sources Of Rare Earths In The Next Three To Five Years

Robert F. Kennedy, Jr. and CRS CEO, John Yob
on Creative Recycling's E-Scrap Processing System

Executive Summary:
Due to the expanding use of rare earth minerals (REM) in U.S. industry, is highly likely that improved sustainability and availability measures need to be implemented. Because REM are 100 percent imported, it would be prudent for the United States to reopen its mining operations for use in, among other areas, manufacturing of high technology, alternative energy, and defense applications.  It is also advisable to invest in research to find substitutes and sustainability measures for REM since they are a finite resource.

Discussion:
Environmental and policy factors in the U.S. have allowed China to maintain a stranglehold on the REM mining industry. In June of 2010, the Rare Earth Supply Technology Resources Transformation (RESTART) Act was introduced to promote domestic rare earth production. However, the National Mining Association stated that although the United States has $6.2 trillion dollars of mineral resources, it has the slowest permitting processes in the world for new mines, taking from seven to ten years. Recently, the Metal Service Center Institute suggested that simplifying and reducing taxes, less strict regulations that still protect the environment, and improved energy policy would likely improve the availability of REM from domestic mining. According to Forbes, North America is finally waking up to the consequence of China’s REM monopoly and has invested money and resources to domestic mining. Additionally, a new and steady source of domestic REM mining would likely revive the U.S. manufacturing sector, adding jobs while reducing dependence on China.

Currently, REMs are used in conjunction with many other scarce elements to create everything from glass/lcd (indium and erbium; lanthanum and gallium), to light-emitting phosphors (terbium and indium; terbium and gold; terbium and niobium; terbium and lithium; lutetium and indium), to fine wire for electrical conductors (lanthanum and tungsten; lanthanum and gold), to wavelength amplifiers for fiber optics (lanthanum and gallium; terbium and tantalum; erbium and germanium; lutetium and germanium), to permanent magnets (terbium and vanadium; terbium and cobalt; samarium and cobalt). Clean energy industries employ REMs as catalysts for cleaning diesel emissions (lanthanum and thorium) and in (lanthanum, beryllium and indium).

The United States Geologic Survey (USGS) is conducting national mineral resource assessments, but these studies are time consuming and expensive. Several North American ventures have begun extracting and processing REM, including Orbite Aluminae and Molycorp. In addition to current mining operations, the need to find substitutions and sustainability measures is likely critical to short-term REM independence. Creative Recycling Systems, Inc. and GreenRock Rare Earth Recovery Corporation announced a joint venture, and will be recycling rare earth minerals found in consumer electronics, magnets and batteries. REMs are suitable for recycling because they do not degrade with use, and the elements are actually found in higher concentrations in used products than from original ores. The growth of the sustainability market will likely lessen China’s stranglehold on the REM market.

Analytic Confidence:
The analytic confidence for this estimate is medium. Source reliability is high and sources did corroborate. The analysts’ expertise is medium and the analyst worked in a team. Subject complexity is high and the time available for the task was adequate. Structured analytic methods were not used.

Methods And Processes:
Our plan for completing this assignment was to utilize Google Docs to create the SFAR and as a collaborative tool, using the comments and chat functions. In addition, we would telephone each other if further discussions were needed. We planned to use Zotero for accessing research and saving new resources. Finally, we would publish the document on the Strategic Minerals blog using Blogger.

Google Docs worked well for collaborating and compiling the document. Our initial idea for the SFAR did not hold up once research began so we had to work through how to change our focus. We were able to define a new process using Gmail and Google Docs. From there, we worked independently writing the document while collaborating on the final version.

Authors:
Karen Omniewski, email, Google+, Twitter
Leslie Guelcher, email, Google+, Twitter