AXcess News: Largest Rare Earth Mine in the World Discovered in Nebraska
May 06 2010 - 10:06AM
Marketwired
Quantum Rate Earth Developments (TSX-V: QRE) (PINKSHEETS: QREDF)
acquired the rights to what the U.S. Geological Survey called one
of the largest deposits of niobium globally. The rare earth
property, a 14-square-mile track of farmland in S.E. Nebraska,
could employ hundreds once the mine is developed.
The deal calls for Quantum to pay $10 million to acquire Elk
Creek Resources Corp., a Canadian-owned, Nebraska-based company
that leased the southeast Nebraska property, according to a story
published in the Omaha World-Herald on Wednesday.
NE Senator Lavon Heidemann, who was instrumental in putting
together the deal said, "it could be huge for the state of
Nebraska," if the mine goes into production, which is forecast to
take up to five years once further exploratory drilling is
completed.
It's a matter of economics, Sen. Heidemann noted. "If they
decide to put a mine down, it won't be tens of millions of dollars
in investment, it would be hundreds of millions."
Yet with China calling for a moratorium on exports of rare
earths, the U.S. government has grown concerned over development of
domestic supplies, making the Quantum property possibly one of the
more lucrative discoveries of the decade in the mining sector and
likely to attract the kind of capital needed to place the niobium
mine into full production.
Niobium is used in the production of high-strength steel used in
manufacturing jet engines. The Nebraska mine would also produce
other rare earth elements that go into making everything from
batteries for laptop computers and electric cars to magnets in
wind-power generators.
A source close to the venture capital community said "capital
wouldn't be a problem," considering the property was well-known,
though no one had stepped up and put a deal together -- until now.
"With China threatening strategic North American supplies mining at
a 500 foot depth to extract the niobium and other rare earth
elements at this point is more than cost-effective."
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