{"id":88748,"date":"2016-04-26T17:23:06","date_gmt":"2016-04-26T21:23:06","guid":{"rendered":"http:\/\/countingpips.com\/?p=88748"},"modified":"2016-04-26T17:23:06","modified_gmt":"2016-04-26T21:23:06","slug":"security-of-ree-supply-outside-of-china-does-ucore-have-a-solution","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/04\/security-of-ree-supply-outside-of-china-does-ucore-have-a-solution\/","title":{"rendered":"Security of #REE Supply Outside of China, Does Ucore Have a Solution?\u00a0"},"content":{"rendered":"
April 26, 2016<\/div>
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By Peter Epstein, CFA, MBA \u00a0\u00a0epstein.peter4@gmail.com<\/a>\u00a0\u00a0\u00a0http:\/\/EpsteinResearch.com<\/a><\/b><\/span><\/h4>\n
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Ucore Rare Metals\u00a0[TSX-V: UCU] \/ [OTC: UURAF)\u00a0continues to make meaningful strides in the potential commercialization of its\u00a0Molecular Recognition Technology (\u201cMRT\u201d)\u00a0platform. The most important updates on the\u00a0SuperLig\u00ae-One REE separation pilot plant (\u201cpilot plant\u201d) were the completion of construction, on time and on budget, and\u00a0subsequent\u00a0commissioning<\/a>.<\/p>\n

As promised,\u00a0Pregnant Leach Solution (PLS) from Ucore\u2019s\u00a0Bokan Mountain (H)REE project\u00a0in Alaska will be the first to be processed.\u00a0With the pilot plant commissioned and undergoing testing, Ucore is now pursuing a large number of leads across a range of potential applications. Management assures me that there are far more inquiries pouring in, than sales calls going out.<\/p>\n

\"Screen<\/p>\n

That\u2019s due to Ucore\u2019s 60%\/40% JV with privately held technology partner\u00a0IBC Advanced Technologies, Inc.,\u00a0allowing for exclusive use of MRT both inside and out of the REE realm. Diverse applications include inserting MRT directly into currently operating facilities, recycling and tailings remediation and the separating other metals such as lithium. Ucore is also evaluating a number of opportunities beyond these potential end uses.\u00a0[Photos of\u00a0completed Pilot Plant<\/a>]<\/p>\n

Ucore CEO, Jim McKenzie, has commented that,<\/p>\n

\u201cOur SuperLig technology has a broader scope of applications than most investors can appreciate right now. Yes, we\u2019ve invented a better mousetrap for the separation of rare earths, which is an outstanding accomplishment in isolation. But the MRT platform is effective for the vast majority of technology metals, including lithium, tungsten, cobalt and PGM\u2019s. So, our growth pathways across multiple resource industries are wide and deep.\u201d<\/em><\/p><\/blockquote>\n

Are the tides turning for natural resource industries?<\/div>\n

The timing of the pilot plant could prove to be fortuitous, as many natural resource industries are showing signs of improvement. For instance, oil prices have bounced 60%, from a brief stop at $27\/bbl (WTI Crude<\/em>), and the benchmark iron ore price is up about 75% from its December low. But lithium is the metal that\u2019s captured the world\u2019s\u00a0attention, the price of which is reported to have more than tripled in the past 6 months.<\/p>\n

Importantly, the seemingly never-ending flow of favorable news from the electric transportation and energy storage systems segments, directly benefits Ucore. Commercialized MRT systems for REE would be a significantly greener technology than those used in China, and would have a much smaller surface footprint. The fact that its superior selectivity makes REE processing safer, less expensive, faster & simpler, with 99%+ recovery and purity level, doesn\u2019t hurt either.<\/div>\n

\"Screen<\/p>\n

China Completely Dominates Global Supply & Processing of REE<\/p>\n

Li-ion batteries are a game-changer, not only in EVs, but also for storing renewable energy from intermittent sources like wind & solar. REEs are essential, and are typically hard to substitute for, in a growing number of components used in the green energy \/ storage \/ technology & military industries.<\/p>\n

An even more compelling reason for the excitement over MRT is that it would be utilized outside of China. China completely dominates the supply and processing of REEs, yet no one appears to be overly concerned.<\/p>\n

If MRT can be successfully commercialized, it would not only be greener, (offsetting China\u2019s polluting industries<\/em>), it would deliver desperately needed\u00a0security of supply\u00a0to global end users, especially in the U.S. Just-in-time processing and supply chains are the norm. Turning complex facilities and integrated systems off, and on, is time consuming, costly and sometimes operationally risky.<\/p>\n

Security of Supply, or lack thereof\u2026.<\/p>\n

Security of supply takes on even greater importance with regard to agencies like the U.S. Department of Defense (\u201cDOD\u201d). Our military complex cannot continue to be dependent upon China for both (H)REE supply & processing.\u00a0China flexing its muscles on the REE front has happened before. When it did, REE prices soared, but more importantly, domestic inventory\u00a0of some\u00a0REE feedstocks fell to uncomfortable levels.<\/p>\n

It\u2019s both disappointing and alarming that U.S. agencies, both inside and out of the DOD, not to mention powerful industry trade associations, have failed to address this critically important issue. The ongoing failure to obtain security of supply is a clear and present danger. There are dozens of military applications dependent upon REEs.<\/p>\n

Consider this 2010\u00a0NY Times editorial<\/a>\u00a0(this was big news<\/em>) by Paul Krugman, referring to an international incident between China & Japan. An embargo on (H)REE to Japan (some contend to the U.S. as well<\/em>) served to embarrass both political & private industry trade groups. Despite warnings dating back to at least the 1990\u2019s, this event demonstrated our country\u2019s dangerous ambivalence. Mr.\u00a0Krugman stated,<\/p>\n

\"Screen<\/p>\n

\u201cChina\u2019s abundance of REE and low extraction & processing costs \u2014 reflecting both low wages & weak environmental standards \u2014 allowed China\u2019s producers to undercut the U.S.\u00a0You really have to wonder why nobody raised an alarm, if only on national security grounds. Instead, policy makers simply stood by as the U.S. REE industry shut down. The result was [is] a monopoly position exceeding the wildest dreams of Middle Eastern oil-fueled tyrants.<\/i>\u2026\u00a0China\u2019s actions against Japan [in 2010] fundamentally transformed the rare earths market for the worse. As a result, manufacturers can no longer expect a steady supply of these elements\u2026.\u201d<\/em><\/p><\/blockquote>\n

Six years later<\/span><\/span>, I\u2019m both happy and relieved to report that this critical issue has finally been addressed\u2026. Well, I WISH I could say that, but just the opposite is true. China still dominates all things REE, the understanding of China\u2019s capabilities has grown and geopolitical \/ trade \/ financial disputes between China, Japan & the U.S. remain in place.<\/p>\n

The takeaways for prospective (H)REE producers outside of China, and companies with separation \/ processing technologies that could potentially make a dent in \u00a0seemingly intractable problems, are profound. Ucore is in a prime position to 1) benefit from higher (H)REE prices down the road 2) be part of the solution to the global campaign for security of supply, and 3) address increasing demand for products and technologies that advance the paradigm shift away from fossil fuels.<\/p>\n

All roads lead to\u00a0Ucore Rare Metals\u00a0[TSX-V: UCU] \/ [OTC: UURAF)\u00a0and other emerging (H)REE companies with promising projects and separation \/ processing technologies.<\/p>\n

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For more information:<\/p>\n<\/div>\n

Corporate Website<\/a><\/p>\n

Comprehensive\u00a0FAQ MRT platform<\/a><\/p>\n

Academic Paper<\/a>,\u00a0\u201cMRT: A Green Chemistry Process for Separation of Individual Rare Earth Metals\u201c<\/p>\n

By: Steven Izatt, James McKenzie, Neil Izatt, Ronald Bruening, Krzysztof Krakowiak & Reed Izatt (Feb, 20, 2016)<\/em><\/p>\n

Academic Paper<\/a>, \u201cIncreasing efficiency & decreasing cost and environmental damage of rare earth refinement.\u201d \u2014\u00a0Massachusetts Institute of Technology (MIT)<\/em><\/p>\n

Bokan (HREE) Project<\/a>,\u00a0(\u201cTop 10 Advantages\u201d)<\/p>\n

Disclosures<\/u>: Readers fully understand and agree that nothing contained in this article authored by Peter Epstein, from\u00a0<\/em>EpsteinResearch.com[ER],\u00a0including but not limited to, analysis, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered in any way whatsoever, implicit or explicit investment advice or guidance. Further, nothing contained herein is a recommendation\u00a0or solicitation to buy, or sell any security.\u00a0\u00a0<\/em>[ER]\u00a0has never been, and is not currently, a registered or licensed financial advisor or broker\/dealer and does not perform market making activities.\u00a0The shares of\u00a0<\/em>Ucore Rare Metals\u00a0are highly speculative, not suitable for all investors.\u00a0<\/em>Readers are urged to consult with their own financial advisors before making investment decisions.\u00a0<\/em><\/em><\/p>\n

Any comparison between or among stocks is for illustrative purposes only, and should not be taken as fact or relied upon.\u00a0Readers understand and agree that they must conduct their own investment due diligence. An investment in any small cap stock,\u00a0including\u00a0<\/em>Ucore Rare Metals, can deliver a 100% loss. While the author believes that he\u2019s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful.\u00a0Mr. Epstein is not responsible for any perceived, or actual, errors including, but not limited to,\u00a0analysis, commentary, opinions, views, assumptions, reported facts & financial calculations, or for investment actions taken.\u00a0<\/em><\/p>\n

At the time this article was posted,\u00a0<\/em>Ucore Rare Metals\u00a0was a sponsor of EpsteinResearch.com and the author did not own shares in the Company<\/em>.\u00a0<\/em><\/p>\n<\/div>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Peter Epstein, CFA, MBA \u00a0\u00a0epstein.peter4@gmail.com\u00a0\u00a0\u00a0http:\/\/EpsteinResearch.com Ucore Rare Metals\u00a0[TSX-V: UCU] \/ [OTC: UURAF)\u00a0continues to make meaningful strides in the potential commercialization of its\u00a0Molecular Recognition Technology (\u201cMRT\u201d)\u00a0platform. The most important updates on the\u00a0SuperLig\u00ae-One REE separation pilot plant (\u201cpilot plant\u201d) were the completion of construction, on time and on budget, and\u00a0subsequent\u00a0commissioning. As promised,\u00a0Pregnant Leach Solution (PLS) from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-88748","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=88748"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88748\/revisions"}],"predecessor-version":[{"id":88749,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88748\/revisions\/88749"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=88748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=88748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=88748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}