Reacting to China’s recent clampdown on unregulated mining of rare earth materials, Vancouver-based Quantum Rare Earth Developments Corp. (TSX-V:QRE; OTCQX:QREDF; FRANKFURT:BR3) is calling on the U.S. to start stockpiling rare earth materials.
“Some end users were relying on that [Chinese] black market supply, so it’s causing further pressure on the pricing and, more importantly, it’s caused further pressure on supply,” Quantum CEO Peter Dickie said. “It’s brought to the limelight the need to bring on stream as quickly as possibly other supply chains.”
Dickie noted that the demand for rare earth materials has surged in recent years.
“The demand has grown phenomenally over the past 15 years and it’s largely due to the implementation of these rare earth metals and rare earth elements in a variety of high-tech devices.”
Dickie said Quantum has thrown its weight behind two U.S. bills that support a return to stockpiling rare earth materials, noting the company hopes that the bills would lead to an acceleration of the American permitting process for rare earth material projects.
He said that if the U.S. recommences stockpiling, Quantum is well poised to become a supplier of the rare earth metal niobium, which is used as a steel hardener.
“There is the potential that we would be one of the markets that they would source the material from,” he said. “From a niobium aspect, I think we have a leg up on everyone else for an internal source.”
Jenny Wagler
Twitter: JennyWagler_BIV