Rare Earth Metals Inc (C:RA)
Shares Issued 73,570,134
Last Close 9/27/2010 $0.50
Tuesday September 28 2010 - In the News

Also Great Western Minerals Group Ltd (C:GWG) In the News

The Globe and Mail reports in its Tuesday, Sept. 28, edition that rare earth metals came into the spotlight last week following reports that China had blocked exports of the commodities to Japan. The Globe's Shirley Won writes that the dispute underlined the market's dependency on China. The country, which produces 90 per cent of the global supply of rare earths, has already slashed export quotas on the metals this year by 40 per cent from 2009, a move which has pushed up prices and spurred new mining projects. Potential shortages of rare earths, combined with growing demand for the materials, is sparking new interest in investment opportunities in the area. The sector is fraught with risks for investors. China aside, the biggest reason to invest is the growing demand for the "heavy" or higher-grade rare earths used in hybrid and electric cars, says Bryon Capital analyst Jon Hykawy. He says, "The rarest elements may come into short supply over the next two or three years." The problem is not finding rare earths, but extracting them economically. Mr. Hykawy says the best way to play this sector is to buy several producers because the risk is too high to bet on one. The analyst has "speculative buys" on Rare Element Resource and Great Western Minerals Group.

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