Brazil and Plato's NiobiumWhy I hold PGC shares:
Brazil produces some 91% of the world's niobium, now declared a "strategic mineral" by the U.S. and EU because of its growing usage in strengthening aluminum and steel. In addition, Toshiba's development of a niobium battery is likely to significantly increase demand.
Politically the U.S. and China are now engaged in what appears to be an all out trade war. A dangerous game as China can hurt U.S.interests by restricting (as they have done before) exports of rare earths and strategic metals including niobium as they control Brazil's companies, by far the worlds biggest exporter of niobium..
Brazil holds an election Sunday that may greatly influence niobium pricing and supply with the candidate forecast to win stating a goal of nationalizing the countries niobium mines.
https://www.zerohedge.com/news/2018-10-05/brazils-donald-trump-dominates-key-presidential-debate-despite-absence-due-stab
"One of his main campaign proposals is support for a protectionist agenda for niobium exploitation. Niobium is a very resistant metal and Brazil possesses the vast majority of deposits. According to Bolsonaro, state control of the metal’s exploitation would increase the commodity's price and could be a central element to solving the Brazilian fiscal crisis. That is not exactly a market-friendly approach." Link below.
https://www.americasquarterly.org/content/why-markets-should-be-skeptical-jair-bolsonaro
Given niobiums rapidly growing applications N. America and the EU need a secure source of supply. Plato's discovery, centred as it is in Ontario with excellent infrastructure in place, is likely to soon attract commercial interest from steel makers, battery manufacturer's and large importers uncertain as to how the U.S./China trade dispute will play out given Chinese multi billion dollar investments in Brazil's niobium mines..
Brazil and China share a strong relationship, leaving Brazil's world hold on the niobium market open to political influence, a dark cloud hanging over future supply to Europe and North America users. Plato may well have a role in changing that. Some detail on that relationship in link below:
https://www.scmp.com/news/china/economy/article/2156536/china-turns-brazil-amid-trade-battle-us