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Avalon Rare Metals participates in BBC Radio 4 show about rare earths supply concerns

26th May 2010, 12:15 pm
Avalon Rare Metals participates in BBC Radio 4 show about rare earths supply concerns

Avalon Rare Metals (TSX: AVL, OTCQX: AVARF) noted a recent BBC Radio 4 program about rare earth elements (REE) Costing the Earth, which highlighted the importance of the rare earths to green technology and the looming shortage in the market that could potentially drive up the value of rare earth mineral developers such as Avalon.


During the broadcast, the BBC’s Tom Heap interviewed Professor of Materials Science at the University of Birmingham Rex Harris, Managing Director of the Metals and Alloys division of Great Western Minerals Group David Kennedy, Avalon's President Jack Lifton and Chief Executive Don Bubar, and Animesh Jha, Professor of Applied Material Science from Leeds University.


To listen to the broadcast, CLICK HERE


Avalon's primary asset is the 100% owned, advanced development stage project, Nechalacho Rare Earth Element Deposit in Canada’s Northwest Territories. Avalon also owns four other rare metals and minerals project in Canada, of which three are at advanced stages of development.


The company has recently found a new high grade sub-zone during its winter drilling program at Nechalacho. The first steps in the permitting process for the Nechalacho REE deposit, have been initiated. On April 23, 2010, Avalon filed a detailed Project Description Report (PDR) with the Mackenzie Valley Land and Water Board (MVLWB) as the first step in its application for a Type A Land Use Permit and Type A Water License.


Back in January, Avalon said that indicated resources in the Nechalacho Basal Zone increased by 102% to 9 Mt (million tonnes) grading 1.86% TREO (total heavy earth oxides) with 23.1% HREO (heavy rare earth oxides)/TREO at the 1.60% TREO cut-off.


Exports from the world’s leading rare earths producer China, which accounts for 97% of the global supply, have been constrained via higher export levies and production quotas, while the global demand keeps rising together with the production of eco-friendly cars and gadgets. It has been projected that the annual demand could outstrip supply by 40,000 tonnes in just a few years at the current supply levels. A report from the US Government Accountability Office has said that domestic deposits in several US states are at an exploratory stage and it could take up to 15 years to rebuild a rare earth materials supply chain that was previously in place.


Shares in the company have nearly doubled over the past year, rising from C$1.15 to the current C$2.25 per share on the Toronto Stock Exchange.

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