Under the agreement reached, China has committed to supplying all necessary rare earth minerals, as well as finished magnets, to the U.S. market.
“The implications for other rare earth-producing countries are that, while short-term predictability improves by reducing the risk of global shortages, many countries and companies still view such dependence as a geopolitical risk,” notes Juan Carlos Guajardo, director of Plusmining.
In his view, the agreement offers temporary relief on the supply side, but does not eliminate the structural risks that make production in other countries attractive. “The need to develop alternative sources remains alive. In this context, Chile could benefit if it succeeds in structuring competitive and sustainable projects. Chile possesses promising geological potential.”
However, Álvaro Merino, executive director of Núcleo Minero, points out that the limited development of rare earth production in Chile is not due to external factors, but rather to internal bureaucracy and pressure from environmental groups that have hindered the country from fully leveraging its potential in this field.
“Indeed, the Aclara project, located in the town of Penco—which involves an investment of US$130 million and a planned steady-state production of 1,700 tonnes—has been under review for years and still lacks the necessary permits to operate,” says Merino.
“The country urgently needs to streamline the permitting process. If we manage to do this well, Chile will be able to seize the significant opportunities offered by the growth of the rare earths market,” he adds.
Source: El Mercurio