SAN JOSE, Calif.--(BUSINESS WIRE)--New caps on rare earth production for 2011 announced by China last week support the assertion by Green Technology Solutions Inc. (OTCQB:GTSO) and other experts that the world’s top producer of rare earth elements is not keeping pace with global demand for the critical materials. GTSO is working to fill the gap by developing new sources of rare earths inside the U.S. and Mongolia.
China’s Ministry of Land and Resources said last week that the Asian superpower will cap the total output of rare earth oxide at 93,800 tons this year. The total represents a meager five-percent increase over last year’s cap despite soaring prices and demand for rare elements across the globe. The ministry also announced that it will not grant any new licenses for rare earths prospecting and mining before June 30, 2011.
The announcement is only the latest move by China to keep more of its own rare earths. The nation’s Communist government has announced a series of new policies for its rare earth industry this year. In recent months, China announced stricter emission limits on miners, cuts in export quota and a new resources tax. Despite holding only 30 percent of the world’s rare earth reserves, China nevertheless produces better than 95 percent of the world’s supply. Its new policies signal a change in economic strategy: By slashing exports and raising taxes, some analysts say China may be hoping to entice green technology developers to move their factories to China instead of importing Chinese rare earth ore to factories elsewhere.
Rare earths are critical components in the manufacture of high-tech green energy technology such as photovoltaic solar panels, wind turbine generators and electric car batteries. They are also essential to the production of advanced smart weapons and defense systems. China’s new rare earth policies have led many U.S. officials to support the efforts of companies like GTSO and others to develop new sources of the rare elements outside of China. Last week, President Obama stressed the importance of green energy development to a strong national energy policy during at address at Georgetown University. A day later, Reps. Hank Johnson (D-Ga.) and Edward J. Markey (D-Mass.) introduced a bill that would direct the U.S. Geological Survey to conduct a three-year international assessment of the availability and production of rare earth elements. The Resource Assessment of Rare Earths (RARE) Act would analyze known mineral reserves as well as investigate potential undiscovered deposits outside China.
GTSO is working to take the lead in the effort to develop new sources of rare earth. The company recently signed a letter of intent to acquire the Rio Del Monte Mining properties near Salome, Ariz., in hopes of developing the site into a domestic source of rare earth elements. GTSO President and CEO John Shearer personally inspected Rio Del Monte last week; the company is now preparing to send mineral samples from the mining properties to Actlabs in Ontario, Canada, to be analyzed for their rare earth content.
GTSO’s rare earth development efforts do not end in the U.S., however. A joint venture between GTSO and Rare Earth Exporters of Mongolia is analyzing four new potential mining sites in that developing Asian nation, China’s neighbor to the north. Many experts believe that Mongolia’s untapped rare earth reserves could rival those of China.
To learn more about the joint venture’s Mongolian rare earth export strategies, please visit http://www.rareearthexporters.com.
Green Technology Solutions commercializes clean and renewable mining technology and products in a sector that affects Arafura Resources (ASX: ARU), Neo Material Technologies Inc. (Toronto: NEM), MV Rare Earth/Strategic Metals (NYSEArca: REMX) and General Dynamics Corp. (NYSE: GD).
About Green Technology Solutions, Inc.
Green Technology Solutions, Inc. (GTSO) is an OTCQB publicly traded company. OTCQB is the middle tier of the OTC market. OTCQB companies report to the SEC or a U.S. banking regulator, making it easy for investors to identify companies that are current in their reporting obligations. GTSO strives to acquire, develop and implement the newest clean mining technology to enable our partner clients to expand operations throughout the world. Environmental restrictions represent the largest restriction to mining industry growth and operations. GTSO focuses on overcoming these environmental restrictions with brilliant cutting-edge clean mining technology.
For more information, please visit http://www.GreenTech-Solutions.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.