Business
Jamaica to benefit greatly from new discovery of rare earth metals
Nippon Light Metal has agreed to invest US$3 million in buildings and equipment for the pilot project while also being responsible for operating costs. Any rare-earth elements produced during this phase will be jointly owned by Jamaica and the Japanese company.
Negotiations for commercialization are expected to occur at a later date.
China has built a virtual monopoly on supplying rare-earth elements to the world’s manufacturers, thanks to cheap labor and low environmental standards. It alarmed companies around the world in recent years by reducing exports and at the same time building up its own industries, saying the curbing of rare earth exports was needed for environmental protection.
Last year, the World Trade Organization created a panel to evaluate China’s rare earth exports after the U.S., the European Union and Japan complained about the curtailment of Chinese sales of rare earth minerals.
Rare earths aren’t scarce, but few places exist with enough concentrations to mine profitably, and they are difficult to isolate in a purified form and require advanced technology to extract.
Jamaica had previously tried to get rare earth minerals from the country’s red mud around bauxite mining grounds, but Paulwell said it faced major challenges in attempting to extract minerals from the bauxite tailings.
Last January, Nippon Light Metal approached Jamaica saying it had the capacity to extract rare-earth elements and wanted to evaluate the local red mud. Since then, it has done chemical research and successfully extracted some rare-earth elements, Paulwell said.
Representatives of the company could not immediately be reached for comment.
If the pilot project is a success, Nippon Light Metal hopes to extract 1,500 metric tons of rare-earth oxides annually, Paulwell said.
“It is clear that this resource presents an opportunity Jamaica must pursue, and which must be managed in such a way that Jamaica and Jamaicans benefit significantly,” he said.
Copyright 2013 The Associated Press
