Japan reportedly finds major rare earth elements deposit

A group of Japanese researches says they have located a major rare earth deposit near remote Minamitorishima island. The initial estimate is that the mud soil 5600 metres below surface might contain 6.8 tonnes of rare earth metals including dysprosium used in laser materials and commercial lighting and possibly in hybrid cars, and yttrium used in colour televisions and other screens, Japan Times reports.

At current rates the amount would be up to 230 of Japan’s annual consumption, although of course rare earth elements do not come alike and some are rarer and in bigger demand than others. Japan has been feeling the heat since its industry uses a lot of the materials and China, which currently produces nearly the entire amount the world needs has started cutting down on exports as it sees its own resources slowly dwindling. The country has thus started to recycle as much of them as it can and stockpile large amounts to insure supplier for its industry. Current mining technology does not allow for a full-scale exploitation but commercially viable solution seems possible.

Greenland is one of the places of interest regarding rare earth metals exploration. There are numerous companies in the field listed across the world’s exchanges. Some of their prices had jumped going into Denmark-China talks with the presumption that Greenland’s mineral resources were of interest to China. Some exploration interest has also taken place in Fennoscandia. Indirect effects of course might spill further to both manufacturers of products requiring the minerals and their subcontractors. Some industries (like automobile and renewable energy) have been considering alternate technologies if rare earth elements prices go too far or there is a supply bottleneck.