ACI possesses the rights to rare earths mineral properties in Africa, South America and Eurasia through outright ownership or joint ventures.
ACI is capable of expanding into a highly successful diversified mining, energy and agri-business company that will not only continue to strive to successfully create value for its shareholders but also fulfill it’s environmental objectives as well contribute significantly to the mining industries in Africa, South America and Eurasia, with the potential to create employment in the form of hundreds of permanent positions.
World demand for rare earths (as rare earth oxides or REO) in 2013 was approximately +-120,000 tonnes, having a value of +-USD11 billion.
China accounts for 90% of production and has a third of the world’s deposits.
About +-70% of total demand is from China and the remainder split between Japan, the USA and Europe.
Tungsten prices have now gone up to +-USD30,000 / tonne (2013).
Price per kg on Tantalite ex mine sits at +-USD$170 (2013).
Rare earth oxides are used in a wide range of applications with total global demand growth rates of approximately 8% to 10% per year with some end use applications growing at twice that level.
Demand for REO products is driven by advances in green and energy efficient technologies, by high technology and consumer electronic applications and in general by increases in global GDP.
Despite the reductions in demand during the 2007 to 2009 global financial crisis, rare earths demand has proven resilient and has now returned to about the levels prior to the financial crisis.
Supply concerns from China (albeit Beijing in 2011 imposed an export quota of 30,184 metric tonnes, marginally reduced from 30,258 metric tonnes in 2010, export restrictions were abolished late 2014 after it lost a WTO ruling) has seen a growing need for alternative supply sources and recommissioning of some old mines.
Studies by the European Union and United States Geological Survey on mineral risk, rank them as the highest mineral raw materials of critical concern, given their uncertain future supplies and importance to advanced industrial economies (2013).