INDUSTRY BULLETIN: Avalon leads supply chain
discussions at Magnetics 2010 and Lithium Supply and Market Conferences
|
February 4, 2010 - In this
Industry Bulletin, we present some of the highlights from the Magnetics
2010 Conference, held in Orlando, FL on January 28th and 29th, at which
Avalon was invited to deliver the opening keynote address, and the Lithium
Supply & Markets Conference, held in Las Vegas, NV on January 27th and
28th at which Avalon was invited to chair the panel on the adequacy of
economic lithium reserves.
Magnetics 2010 attracted over
200 delegates representing magnet manufacturers, end-users, researchers,
and raw material suppliers, from around the world to discuss industry
trends and address the issue of the supply chain "capability gap"
which has evolved in North America. Avalon, represented by Ian London, who
serves as a market development & energy advisor to the Company,
delivered a 45-minute address entitled Growing Demands and the
Delicate Balance for Rare Earth Supply. The presentation included an overview of key supply/demand
fundamentals for the rare earth elements ("REE") needed for high
strength permanent magnets. This included market forecasts originally
presented by Dudley Kingsnorth at the Critical and Strategic Materials
Conference in Washington, DC, October, 2009.
Mr. London also cautioned the delegates about a number of key raw
material supply realities including:
- The
recent proliferation of announcements from various small cap public
companies about new rare earth element "discoveries" that,
despite optimistic projections from project proponents, face long
development timelines and significant technical challenges before they
can be realistically considered as potential new supply sources.
- The
capital requirements, engineering complexities and financing
challenges associated with extracting and processing REE ores through
to refined metal and alloy, given China's dominance of this market,
remain daunting for potential new producers.
- How
counter pressures are building on the supply-demand balance with
accelerating demand from new REE-based technologies while the
supply-side faces ever-longer lead times for new project
implementation. This may require new government policy initiatives or
incentives to ensure that a reliable long-term domestic supply of
critical raw materials, such as the heavy rare earths, is developed
and maintained.
Avalon, with its Nechalacho Rare
Earth Elements deposit at Thor Lake, NWT, being the only known North American
REE deposit containing economically significant quantities of the heavy
rare earths terbium and dysprosium, is in a position to provide a solution
to the emerging North American REE supply chain "capability gap".
The Lithium Supply & Markets
Conference attracted over 200 delegates representing battery manufacturers,
electric vehicle manufacturers, researchers, and raw material suppliers,
from around the world to discuss industry trends and address the issue of
future lithium supplies. Avalon was represented by Dr. David L.
Trueman, our long-time, resident expert on rare metals geology.
Dr. Trueman chaired a panel
discussion, entitled "Do we have enough economic lithium
reserves?" which examined the geology, mineralogy and processing of
lithium deposits, including a discussion of the competitive positions of
hard rock, lithium clays, and continental brine types of deposits. Dr.
Trueman commented on the same subject at the International Electric Vehicle
meeting in North Carolina in 2008, forecasting that the mining exploration
industry would rapidly respond to the expanding demand for lithium from the
rechargeable battery sector, a forecast that has proven correct with over
100 mineral exploration companies now actively exploring for lithium on at
least 144 lithium projects around the world.
Avalon's Big Whopper Pegmatite
at Separation Rapids, Ontario, is a player in the lithium business holding
a strategic advantage in being a relatively advanced project with a large
NI 43-101 compliant lithium resource defined, that is also permitted to
start production once a market is established and development partnerships
are finalized.
About Avalon Rare
Metals Inc.
Avalon Rare Metals Inc. (TSX:AVL) (OTCQX:AVARF) is a mineral exploration and development company
focused on rare metals deposits in Canada. Its flagship project, the
100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the
largest undeveloped rare earth elements resources in the world. Its
exceptional enrichment in the more valuable 'heavy' rare earth elements,
which are key to enabling advances in green energy technology and other
growing high-tech applications, is one of the few potential sources of
these critical elements outside of China, currently the source of 95% of
world supply. Avalon is well funded, has no debt and its work programs are
progressing steadily. Social responsibility and environmental stewardship are
corporate cornerstones.
|
|