Rare Earth High Prices and Supply Constraints Force U.s. to File Complaint with the Wto
06.04.2012 | Marketwire
The Paragon Report Provides Stock Research on Great Western Minerals Group Ltd. and Lynas Corp Ltd.NEW YORK, 04/06/12 - Rare earth metals have been a hot topic in the news recently. The increasingly high prices and supply constraints have forced the US, along with Europe and Japan, to file a complaint against China with the World Trade Organization. China rare earth deposits are approximately 30% of global inventories. The Paragon Report examines the outlook for companies in the Rare Earth Industry and provides investment research on Great Western Minerals Group Ltd. (TSX VENTURE: GWG) (PINKSHEETS: GWMGF) and Lynas Corp Ltd. (PINKSHEETS: LYSCF).
Access to the full company reports can be found at:
http://www.paragonreport.com/GWG
http://www.paragonreport.com/LYSCF
US officials are complaining that China has been hoarding stocks of rare earth metals critical for the manufacturing of hybrid cars, mobile phones, and weapons. This forces the US to deal with small supplies at high prices, while China has access to large inventories at significantly lower prices.
President Barack Obama said, "We've got to take control of our energy future and we cannot let that energy industry take root in some other country because they were allowed to break the rules. If China would simply let the market work on its own we would have no objections, but their policies currently are preventing that from happening and they go against the very rules that China agreed to follow."
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Great Western Minerals Group Ltd. yesterday announced the closing of its previously announced offering (the "Offering") of US$80 million of secured convertible bonds (the "Bonds"). In addition, GMP Securities L.P. and ISM Capital LLP, as co-lead agents, together with Byron Capital Markets Ltd. (collectively the "Agents"), exercised an over-allotment option of US$10 million, resulting in the issuance of Bonds in the aggregate principal amount of US$90 million.
Lynas Corporation Limited understands that an appeal to the Minister of Science, Technology and Innovation has been lodged under section 32 of the Atomic Energy Licensing Act in relation to the decision to approve the temporary operating licence (TOL) for the Lynas Advanced Materials Plant. The decision to approve the TOL was announced on 2 February 2012. Lynas understands that the appeal will be heard in April.
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