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44 square miles at Port Kaituma…Govt. has no records of US rare earth company
Government has distanced itself from claims by a US-based company that it
Labourers work at a rare earth mine in China (Reuters photo)
has acquired 44 square miles of land at Port Kaituma, Region One, to explore for rare earth minerals.
According to a release from Guyana Geology and Mines Commission (GGMC), issued through the Ministry of Natural Resources and the Environment, the administration said that it is unaware of any company called REE International Inc. doing business in Guyana with respect to mining or the acquisition of mineral properties.
Via a release from Market Watch, Kaieteur News yesterday published an article that REE International, a US company, has obtained approval from GGMC to conduct business in Guyana. GGMC is the government agency tasked with regulating the mining sector and issuing the relevant permits and licences.
However, GGMC said it has no records of REE International doing business in Guyana.
“The Commission wishes to advise that it is not aware of a company called REE International, doing business in Guyana with respect to mining or mineral properties. REE International has not contacted nor informed the Guyana Geology and Mines Commission of any joint-venture or any Letter of Intent/Agreement with any mining company or mineral tenure in Guyana.”
The Market Watch release quoted the company as saying that it has newly acquired property covering 44 square miles and with over 200 concessions.
The release also said that according to initial estimates by GGMC, done in 2009, the initial estimates of Columbite-Tantalite believed to be in the ground are in excess of US$10M at today’s prices.
Columbite-Tantalite, also known as coltan, is a black metallic ore from which the elements tantalum and niobium are extracted.
Tantalum is used to manufacture electronic capacitors for consumer electronic products such as mobile phones, DVD players, video game systems, and computers. Rare Earth Elements (REE) are minerals and metals also used in products from iPods to defense material.
Niobium is used mostly in alloys, but is also used in electronic circuits and other applications.
“We are pleased to add this property to our portfolio,” stated Tom Mackay, CEO of REE International.
“We believe this acquisition will increase our value as a company significantly.”
The statement said that REE International, Inc. is a U.S.-based mineral exploration company seeking to identify and build an inventory of mineral properties with a primary emphasis on South America.
The company will initially focus on the exploration, mining and sale of tantalum and niobium from their Santa Cruz property located in Venezuela.
Headquartered in Massachusetts, REE International, Inc. is positioning itself to be at the forefront of the United States efforts to free itself from the reliance of China for necessary rare earths.
REE International Inc. holds the rights to a 778 acre property located in Santa Cruz, Venezuela. South America is known as one of the world’s richest tantalum areas and REE International Inc. says it is fast becoming a leader in the exploration and development of these vital rare earths, the company’s website said.
China currently has a monopoly on rare earth.
Some fear China will level exportation bans during disputes like it allegedly did earlier this year against Japan.
Others are concerned about the potential security threat represented by China’s virtual monopoly over the strategically important REE.
There are concerns that China will reduce output of REE to artificially inflate prices, instead of environmental reasons as it purports, which is an abuse of its immense market power and a violation of World Trade Organisation rules.
China has market dominance; it controls 97 per cent of the world’s REE supply.
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