RE:RE:RE:RE:RE:RE:RE:Ruling May Aid Ucore
The ruling could benefit Ucore if it effects the price for HREEs. Right now China is supplying it industries with HREEs at much lower cost than it does to industries in other countries. This I think is what WTO finds unacceptable. China is trying to consolidate the REE mining by supporting takeovers of smaller "polluting" miners by 5 large and more progressive ( read "Party favourites") companies in order to better manage production and centralize control. There is a great deal of corruption, illegal extraction etc. in the mining industry causing environmental harm and skewed market forces. If China is compelled to demand the same market price for REES from companies within China as it does for foreign enterprises, then the overall REES price may increase, especially HREES. Indeed if China keeps growing at 7% a year, they may soon need to import some HREES. This would then benefit Ucore. My feeling is that once Ucore finishes its Feasibility and perhaps gets a producing mine operating, Molycorp will swallow it up.-for a sustantial premium. They desperately need HREEs and there is no better way to become a significant player than to do a takeover. Ulmimately then, they will also benefit from the WTO decision They have the time now to get their financial house in order.