Thanks for the econ-analysis about how it's not another govt-funded boondoggle for a leviathan incumbent in an unprofitable field; hopefully a sign of more auspicious deals to come! Sooner or later, we need to have more bipartisan discussion of how we must onshore critical manufacturing and mining if China's sole economic strategy is conquest. Whether or not Trump chose to start a trade war, we're just getting a taste of what could happen in the event of a military conflict.
I am very pleased that business as usual (which was failing) is over and a more conscious of the risks approach is on the table. This was a good first move. Thanks for pointing it out.
A similar deal is Perpetua Resources building an open pit gold mine with Pentagon financing. The mine will also produce antimony which is key ingredient in things that go boom. Currently 80% of antimony comes from China. Permitting being fast tracked now. The stibnite mine is the 5th best unbuilt gold prospect in the world. Symbol PPTA. 😎
What else would be considered essential for re-industrializing the US? Silicon/SiC? Looks like we're seeing more of these "government golden share" deals.
Ticker symbol - IDR - Idaho Strategic Resources Inc, has rights to rare earth metals. I'm surprised no one has mentioned it in the comment section. FD: I own the stock at lower prices than current prices.
Anyone who knows the company I hope will share insights/opinions on it.
China mining operations in West Africa. Terrible track record for environmental degradation. If your leased or owned property is adjacent to their active mined tract of land, and you’re not there, they will stray across the property lines and expand their excavation area to include your lease holdings.
For 27 years, US politicians were cowardly or brain dead as China took over the global market for "rare earths". Finally, after all of those years, there is a rational national security response. Hopefully, we are not too late.
Thanks Doomberg, good article. I was trying remember if it was you or another commentator that discussed the specific metal used in power transformers used in electricity infrastructure. From what I remember, the last US company producing such metal closed years ago, leaving us reliant on others, primarily the Chinese. How many more critical commodities and upstream manufacturing capabilities, have we let slip away, leaving us vulnerable to Chinese leverage? Who is doing the work on this? More importantly, are these holes being addressed at all?
Mountain Pass has a long and complex operational and geologic history. Here is a link to an informative geochemical summary of the deposit. https://youtu.be/9eSi-8Lvc88?feature=shared
How the deposit was emplaced involves a unique order of tectonics, metamorphism, and fluid flow. Geology field trips would visit the pit decades ago but I'm not sure that's happening now. It certainly could use some revisiting and further study. The Clark Mountains, just to the north of the pit, has challenging trails, beautiful desert landscape, and interesting geology that adds to the understanding of the pit.
If there's a downside, it's the pit is in California and one can only assume there will be environmental opposition to increased ore production or expansion of the pit. Environmental NGOs need to be reminded of their past poor decisions in the area. That is the solar-farm financial and land impact disaster, just to the east of Mountain Pass, they helped advance several decades back: Ivanpah Solar Power Monstrosity Bites the Taxpayers. Again. | American Enterprise Institute - AEI https://share.google/JgvBaelEYetYXPoDu
Perhaps, this time around the area will see a project that helps the nation’s security and finances while preserving the desert environment.
Totally agree. I'm not at all a Trump fan, but I have to give it to him. This was a great move. And it didn't hurt that I had some MP in the portfolio either. :)
Another insightful essay, Doomy. With such positive upbeat writing you may have to change your group's name to something like Boomberg. 🤣
Rare earth metals are not rare in discovery (I'm told). They are simply rare in proportion to other earth minerals. China does not have a monopoly on rare earths. It only has a monopoly on the dirty process of refining them. This "cornering" of that market has been apparent for years which made me wonder if we have low IQ folks running the government (no reply necessary - the voters are from the same group). 🙄
"The best argument against democracy is a five-minute conversation with the average voter." - - Winston Churchill
What if the Hatfields were dependent on the McCoys to make their ammo to supply their feud? It's that obvious as well as irresponsible to let things get the way they are today (sigh). I believe that high office does not correlate with common sense and acceptance of reality. Think what you want, but at least under the present administration things seem to be turning around in this department. I guess we'll have to wait and see. In the meantime, they should take all the Washington Neocons and lock them up somewhere so they don't write checks this nation cannot cash for the next three to five years. Actually, we don't want them writing any "checks" at all. 😕
I'll bet Pelosi had MP Materials in her portfolio "just in time" for the July moonshot. I am very upset that she didn't give me a call. 😏
Thanks for the econ-analysis about how it's not another govt-funded boondoggle for a leviathan incumbent in an unprofitable field; hopefully a sign of more auspicious deals to come! Sooner or later, we need to have more bipartisan discussion of how we must onshore critical manufacturing and mining if China's sole economic strategy is conquest. Whether or not Trump chose to start a trade war, we're just getting a taste of what could happen in the event of a military conflict.
I am very pleased that business as usual (which was failing) is over and a more conscious of the risks approach is on the table. This was a good first move. Thanks for pointing it out.
A similar deal is Perpetua Resources building an open pit gold mine with Pentagon financing. The mine will also produce antimony which is key ingredient in things that go boom. Currently 80% of antimony comes from China. Permitting being fast tracked now. The stibnite mine is the 5th best unbuilt gold prospect in the world. Symbol PPTA. 😎
What else would be considered essential for re-industrializing the US? Silicon/SiC? Looks like we're seeing more of these "government golden share" deals.
Ticker symbol - IDR - Idaho Strategic Resources Inc, has rights to rare earth metals. I'm surprised no one has mentioned it in the comment section. FD: I own the stock at lower prices than current prices.
Anyone who knows the company I hope will share insights/opinions on it.
Looks like our politicians is learning.
Yet another thoughtful analysis. Well done.
MMGA - Make Mining Great Again
China mining operations in West Africa. Terrible track record for environmental degradation. If your leased or owned property is adjacent to their active mined tract of land, and you’re not there, they will stray across the property lines and expand their excavation area to include your lease holdings.
100%
The US Defense Establishment has been brain dead for 27 years.
For 27 years, US politicians were cowardly or brain dead as China took over the global market for "rare earths". Finally, after all of those years, there is a rational national security response. Hopefully, we are not too late.
Yup
Thanks Doomberg, good article. I was trying remember if it was you or another commentator that discussed the specific metal used in power transformers used in electricity infrastructure. From what I remember, the last US company producing such metal closed years ago, leaving us reliant on others, primarily the Chinese. How many more critical commodities and upstream manufacturing capabilities, have we let slip away, leaving us vulnerable to Chinese leverage? Who is doing the work on this? More importantly, are these holes being addressed at all?
Wasn’t us but no doubt it’s true.
Mountain Pass has a long and complex operational and geologic history. Here is a link to an informative geochemical summary of the deposit. https://youtu.be/9eSi-8Lvc88?feature=shared
How the deposit was emplaced involves a unique order of tectonics, metamorphism, and fluid flow. Geology field trips would visit the pit decades ago but I'm not sure that's happening now. It certainly could use some revisiting and further study. The Clark Mountains, just to the north of the pit, has challenging trails, beautiful desert landscape, and interesting geology that adds to the understanding of the pit.
If there's a downside, it's the pit is in California and one can only assume there will be environmental opposition to increased ore production or expansion of the pit. Environmental NGOs need to be reminded of their past poor decisions in the area. That is the solar-farm financial and land impact disaster, just to the east of Mountain Pass, they helped advance several decades back: Ivanpah Solar Power Monstrosity Bites the Taxpayers. Again. | American Enterprise Institute - AEI https://share.google/JgvBaelEYetYXPoDu
Perhaps, this time around the area will see a project that helps the nation’s security and finances while preserving the desert environment.
Great color thanks for sharing
Totally agree. I'm not at all a Trump fan, but I have to give it to him. This was a great move. And it didn't hurt that I had some MP in the portfolio either. :)
Ha nice
Another insightful essay, Doomy. With such positive upbeat writing you may have to change your group's name to something like Boomberg. 🤣
Rare earth metals are not rare in discovery (I'm told). They are simply rare in proportion to other earth minerals. China does not have a monopoly on rare earths. It only has a monopoly on the dirty process of refining them. This "cornering" of that market has been apparent for years which made me wonder if we have low IQ folks running the government (no reply necessary - the voters are from the same group). 🙄
"The best argument against democracy is a five-minute conversation with the average voter." - - Winston Churchill
What if the Hatfields were dependent on the McCoys to make their ammo to supply their feud? It's that obvious as well as irresponsible to let things get the way they are today (sigh). I believe that high office does not correlate with common sense and acceptance of reality. Think what you want, but at least under the present administration things seem to be turning around in this department. I guess we'll have to wait and see. In the meantime, they should take all the Washington Neocons and lock them up somewhere so they don't write checks this nation cannot cash for the next three to five years. Actually, we don't want them writing any "checks" at all. 😕
I'll bet Pelosi had MP Materials in her portfolio "just in time" for the July moonshot. I am very upset that she didn't give me a call. 😏
All true
Does anyone believe our Canadian government could even conceive of such a deal?
It's amazing what can get done when smart business people are given the opportunity to tackle a problem and find a solution.
Carney actually knows private equity. He was chair at Brookfield…
I'm placing my bets on Canada. My Neo Performance Materials stocks are aleady up 55%. I wouldn't mind a government boost of another 50%, like MP got.
Nice
OK I'm hoping for you and Canada.