Mongolian rare earth exporter signs agreement with American company

ULAN BATOR, Feb 09, 2011 (Xinhua via COMTEX) --

Rare Earth Exporters of Mongolia has entered into a joint venture agreement with California-based Green Technology Solutions Inc., local media reported Wednesday.

The agreement is aimed at alleviating a market shortage in the United States, Japan and South Korea, while providing cleaner mining technologies to minimize negative impact on the environment.

"Stable supplies are vital to the security and economy of U.S., Japan and South Korea," said GTSO President and CEO John Shearer.

Domestic usage and environmental concerns has led to fewer mining permits in China, resulting in fewer exports and rising prices, local media said.

Under the agreement, GTSO will provide operating capital for the joint venture and REE will contribute its product development skills. The rare earth will be transported by rail to the seaport of Vladivostok, Russia, where it will be shipped to the U.S., Japan and South Korea.

According to a 2009 estimation by the U.S. Geological Survey, Mongolia has 31 million tons of rare earth reserves, or 16.77 percent of total global reserves, the second biggest holder in the world after China.

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