Tasman Metals: Norra Karr Featured in European Commissions “ERECON” study

Tasman Metals (TSXV:TSM) reported that its Norra Karr heavy rare earths project was featured in a report by the European Commission on the risks and opportunities within the European rare earth element (REE) supply chain. The study was completed by the European Rare Earths Competency Network.

As quoted in the press release:

The ERECON group was commissioned by the European Parliament in 2013. The price volatility and access restrictions experienced by consumers of REE’s from 2010 to 2102 was recognized as a significant threat to Europe’s mega-industries and Europe’s capacity to play a role in the development and use of emerging low-carbon technologies. ERECON brought together more than 80 experts from industry, academia and policy-making to look at ways of improving the security of Europe’s REE supply. Tasman’s technical staff contributed at length to relevant working groups and the steering committee.

The ERECON group identified significant threats to Europe as a result of the current Chinese heavy REE supply monopoly. It was concluded that the Chinese government regards its REE resources as a national endowment of strategic importance, and will conti­nue to capitalize on the opportunities this offers for developing high-tech industries. Whether China will be a reliable future supplier of heavy REE’s was viewed as an open question, with the high environmental impact of mining very low grade clay deposits in Southern China, the prevalence of illegal production, and the lack of transparency cited as placing the REE industry outside normal supply-demand considerations.

Opportunities for primary REE production in Europe were extensively compiled and reviewed by the ERECON team, which identified two advanced stage projects. Tasman’s Norra Karr heavy REE project in Sweden is the only one on the European mainland, with the capacity to be a major supplier of the most critical REE’s for decades.

Tasman president and CEO, Mark Saxon, said:

We congratulate the ERECON team on the technical rigor and effort to understand the opaque supply chain of REE’s. The conclusions and policy recommendations demonstrate an understanding of the growing importance of resource security to Europe, and need for long term strategic planning. Volatile pricing and insecure access to REE’s and other raw materials threaten to undermine European competitiveness and may slow the uptake and development of priority low-carbon technologies, such as electric vehicles and offshore wind energy. ERECON has provided Tasman with a deep European network across the entire REE sector.

Click here to read the Tasman Metals (TSXV:TSM) press release