Japan Crisis and (MCP)(REE)(SHZ)(XING)(AVL)(GMO) Rare Earths

Rare earths companies like China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ), Rare Element Res Ltd (AMEX:REE), Qiao Xing Universal Resources, (Nasdaq:XING), Molycorp, Inc (NYSE:MCP), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL) could be affected in the near term from the crisis in Japan, as uncertainty as to manufacturing of products containing the elements will remain for at minimum days, and possibly weeks.

Market Vectors Rare Earth/Strategic Metals ETF (NYSE:REMX) could also take a temporary hit if it is determined there will be significant delays.

Western companies are scrambling to redevelop mines capable of producing the 17 rare earth elements, used in everything from Apple iPads to wind turbines, after China last year began sharply reducing its exports of the materials.

Business in parts of Japan is at a standstill as authorities cope with aftermath of the quake and people worry about the release of radiation from nuclear reactors at the quake-affected Fukushima Daiichi power station.

That has meant a pause in demand for rare earths at one of the world's largest users, the Asian Metal International Rare Earth Summit in Pittsburgh heard on Tuesday.

over the long term, there is no doubt prices of rare earths will continue to climb, as China has cut back on exports, and may themselves become an importer, even though they at this time produce about 97 percent of rare earths in the world.




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