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1794: RareearthsdiscoveredbyJohanGaddin at Ytterby insweden 1903: Firstcommercialproductionofrareearth flintsattreibach inaustria 1953: Demand~1,000tREO Value~US$25M 2003: Demand85,000tREO ValueUS$500M 2008: Demand124,000tREO ValueUS$1¼B 2015: Demand200,000tREO ValueUS$23B 5
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HistoryofChineseExportQuotas tonnesreo Year DomesticRareEarthQuotas Phase1 Phase2 Total Change Total including ForeignJV Quota ROW Demand 2004 2005 2006 2007 2008 37,189t 2009 9
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EstimatedGlobalRareEarths Demandin2008(tREO±15%) Application China Japan& NE Asia Catalysts USA Others Total Glass Polishing MetalAlloys Magnets Phosphors Ceramics Other Total 74,000 23,500 18,500 8,000 124,000 11
Phosphors 32% Other 3% Ceramics 3% Catalysts 5% Glass 2% Polishing 4% Metal Alloys 13% REO Consumption by Value 2008 Magnets 38% Ceramics Phosphors 6% 7% Other 7% REO Consumption by Volume 2008 Catalysts 19% Glass 10% Magnets 21% Metal Alloys 18% Polishing 12% 12
GlobalRareEarthsDemandin2008&2014(tREO) Application Consumptiontpa REO MarketGrowth 201114 2008f 2014f %pa Catalysts Glass Polishing MetalAlloys Magnets Phosphors&Pigments Ceramics Other Total/Range 124,000 170190,000 811% 13
Rare Earth Oxide Forecast Supply and Demand for Selected Rare Earths in 2014 Demand @ 170-190,000tpa REO Supply @ 190-210,000tpa REO Lanthanum 49-53,000t REO 52-56,000t REO Cerium 62-66,000t REO 80-90,000t REO Terbium 400-700t RE00-500t REO Dysprosium 1,800-2,200t REO 1,500-2,000t REO Yttrium 10-14,000t REO 10-12,000t REO 14
250,000 Demand tpa -REO 200,000 150,000 100,000 50,000 0 China Supply ROW Supply Global Demand China Demand 15
RareEarthContentofMajorSourceMinerals(%totalREO) Rare Earth Oxide BaiyunObo, Mongolia, China Bastnaesite Xenotime MountainPass, California USA Lahat Perak, Malaysia Guangdong, China Ionadsorptionclays Xunwu, Jiangxi, China Longnan, Jiangxi, China Nd 2 La 2 CeO 2 Pr 6 O 11 Sm 2 Eu 2 Gd 2 Total 99.6 99.8 81.2 85.3 99.1 88.7 16
Rare Earth Oxide RareEarthContentofMajorSourceMinerals(%totalREO) MtWeld, Australia Monazite India Guandong, China Loparite Lovozersky Russia La 2 CeO 2 Pr 6 O 11 Nd 2 Sm 2 Eu 2 Gd 2 Total 99.9 98.5 95.8 99.6 17
RareEarthContentofPotentialSourceMinerals(%totalREO) Rare EarthOxide Trachyte Apatite Steenstrapine Fergusonite Dubbo, Australia Nolans Australia HoidasLake Canada Kvanefjeld Greenland ThorLake Canada La 2 CeO 2 Pr 6 O 11 Nd 2 Sm 2 Eu 2 Gd 2 Total 97.1 99.8 99.7 97.5 94.3 18
Factor MountainPass (USA) RCF,GoldmanSachs& Traxys HoidasLake (Canada) GreatWesternMinerals Group ThorLake (Canada) AvalonVenturesLtd BearLake (USA) Status Resource 4.3MtREOcontained (aprovenreserve) 0.04MtREO(indicated) 1.3MtREO(inferred) Potential Production CriticalIssues 19
Factor MtWeld (Australia/Malaysia) LynasCorporationLtd Dubbo Zirconia (Australia) AlkaneResourcesLtd Nolans (Australia) ArafuraResourcesLtd Kvanefjeld (Greenland) GreenlandMinerals& EnergyLtd Status Resource 0.92MtREOcontained (aprovenreserve) 0.65MtREOcontained (aprovenreserve) 0.85MtREOcontained 2.6MtREOcontained Potential Production Critical Issues 20
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