Roskill Rare earth presentation.pptVIP

USGS assessment of world reserves Deposits vary greatly - matching the ratio in the natural occurrence of REOs to the demands of the market is key consideration Preliminary evaluation of components of supply in 2009 (t REO) Comparison of mine and separation quotas and estimated production in China Total export quota fell by 40% in 2010 Impact of quotas and other measures on exports of cerium compounds Exports of cerium carbonate are mainly destined for France, Japan and the USA – where further processing takes place Exports of cerium oxide and other cerium compounds have declined – partly because of the relocation of polishing powder manufacture to China Impact of quotas and other measures on exports of compounds of “other” rare earths Exports of lower value chlorides, carbonates and fluorides declined or remained flat in the last decade Exports of higher value rare earth oxides continued to increase until 2008. The main markets for other REOs are Japan and the USA Decline in Japanese imports of rare earth compound and metals since 2007 – replaced by imports of processed materials? Overwhelmingly dependent on supply from China 99% of lanthanum oxide sourced from China 89% of cerium oxide. 90% of yttrium oxide Composition of new deposits also vary – which will meet the requirements of the market going forward? Rare earth operations under development – Lynas Corp Mount Weld deposit, W. Australia, and a processing plant in Gebeng, Malaysia Capital raising in October 2009 raised A$450M which is being used to finance Phase 1 development, completing construction at Mount Weld and Gebeng Concentrator will produce 35ktpy of concentrate grading 40% REO Phase 1 plant at Gebeng has the capacity to produce 10,500tpy REO Possible expansion to 21,000tpy REO Start up planned for late 2011, full production by 2012 Four sales contracts in place – including with Rhodia, plus further letters of intent Rare earth operations under development – Molycorp Minerals LLC Over 50 yea