The Conversation (0)
The Gold Report reported that in order for junior REE miners to survive a mining slowdown, a well-defined business plan is critical, including a sharp focus on targeted markets for vertical integration.
The Gold Report reported that in order for junior REE miners to survive a mining slowdown, a well-defined business plan is critical, including a sharp focus on targeted markets for vertical integration.
As quoted in the market report:
The end-use products that contain REEs are complex. For example, an iron miner with the strategy to make cars would be laughed at. Yet, when a REE miner advocates making REE permanent magnets, everybody applauds. Simplistically, it sounds like a great way to make money. But it is an example of the foolish overreach by almost all of the REE juniors a few years back. And nobody has accomplished it. Interestingly, that type of “mine to magnet” vertical integration does not exist in the Chinese industry for the simple reason that it doesn’t make economic sense.