A discovery that could change the world balance in the rare earth market and bring an improvement to the living conditions of the Korean population.
The “SRE Minerals Limited”, a company based in the UK, has recently announced the discovery of a large deposit of rare earths (REE – Rare Earth Elements) in North Korea.
The discovery could be one of the largest deposits of rare earths in the world, but further explorations in the areas concerned are still ongoing.
The company has also signed a 25 years long joint venture agreement with the “Korea Natural Resources Trading” for the rights to the exploitation of the new deposit of rare earth of Jongju, north of Pyongyang. The joint venture has created a new company based in the British Virgin Islands, named “Pacific Century Rare Earth Minerals Ltd”.
According to initial estimates, the deposit amounts to about 6 billion tons of minerals, including both light rare earths and heavy rare earths. The value of the deposit is thousands of billions of dollars and may produce, as by-products, fluorspar, apatite, zirconium, nefeline, feldspar and ilmenite. Perhaps most of these names will say nothing to the majority of non-employees in the sector, but heavy industry experts know exactly what we are talking about.
The new deposit in North Korea, DOUBLES the current world’s known reserves of rare earth oxides.
A so important discovery of rare earth reserves means a major improvement in the economic outlook for North Korea. In fact, according to analysts, even without reforms or political changes in the country, new rare earth fields will lead to an improvement in the economic conditions and greater prosperity for the whole population: labor, income, international business, foreign visitors. In addition, the expected economic benefits, will lead to easier international relations with all countries (everyone needs those minerals).
Although the interest of foreign investors in North Korea has recently grown thanks to new infrastructure, the extent of the new discovery has ignited a real international interest to invest in the country: the DPRK is definitely in the world spotlight now and the run on investment begun.
Certainly, it is still very difficult for foreign companies to do business with North Korea. For example, the country has no relationship with Japan and is still technically in war with South Korea. In fact, within a few months there may no longer exist South Korea and Japan as geographical lands.
But the interest of many countries to break China’s monopoly on rare earth industry, which controls more than 95% of world production, could lead to overcome all difficulties. Face it: North Korea has half of the world’s deposits of rare earths.
“The era of strategic patience with North Korea is over” – US Vice President Pence
“For the North Korea issue all options are on the table. North Korea should not challenge Trump’s determination” – US Vice President Pence
Source: metallirari.com