China’s threat boosts value of rare earth shares

December 29, 2010 (Source: Montreal Gazette) — A threat by China to reduce its 2011 exports of rare earths pushed the shares of Avalon Rare Metals up 40 per cent to $6.40 in Toronto by midday Wednesday. Avalon is developing the Nechalacho rare earths property in the Northwest Territories.

Rare Element Resources shares also rose 40 per cent, to $14.54. The firm is working on rare earth properties in the United States.

About 25 publicly traded companies in Canada have rare earth properties in varying stages of development, but production is not expected before 2013. Quest Rare Minerals Ltd. has the Strange Lake deposit in northern Quebec.

China produces 97 per cent of the world’s rare earth elements, used widely in consumer electronics, high-tech products like Apple’s iPods, and in green technology