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Clouds on the horizon for rare earth
developers? |
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Falling sales prices and an increasingly uncertain macroeconomic environment could impact the ability for junior rare earth companies to raise the money for exploration and development work, according to industry commentators.
Rare earth oxide (REO) prices surged in the year leading up to August 2011, in some cases to over 30 times above historical levels, creating a frenzy of interest from investors.
But Chinese export prices have since declined from their summer highs due to lower demand from overseas end users, leaving some investors with less confidence in the market.
The CEO of US-based Molycorp Inc., the largest producer of rare earths outside of China, believes the environment has become tougher for the dozens of companies trying to develop rare earth projects.
“The pricing environment today really is not going to help...