Great Western continues progress toward becoming fully integrated REE producer

Great Western Minerals Group (GWMG) (CVE:GWG) announced several corporate and operational updates on Tuesday, with each bringing the company closer in its plan of becoming a fully integrated rare earth (RE) producer.
Through its wholly-owned subsidiary, Rare Earth Extraction, Great Western holds a controlling interest in the Steenkampskraal rare earth mine in South Africa. The company also owns two rare earth processing plants through its subsidiaries Less Common Metals in Birkenhead, U.K., and Great Western Technologies in Troy, Michigan, where it makes rare earth element-based specialty alloys.
In addition to its Steenkampskraal property, GWMG also owns four rare earth exploration projects throughout North America.
The company said it is still in talks to form a joint venture (JV) with China-based Ganzhou Qiandong Rare Earth Group, in order to build a rare earths separation plant in South Africa, to be located near the former-producing Steenkampskraal mine.
GWMG said the discussions are progressing, and several issues have been settled, including the JV's corporate structure, ownership, and compensation issues. The companies are currently working on a detailed plant design that ensures its customers' requirements will be met, it said.
The refurbishment of the Steenkampskraal mine shaft and ancillary facilities continues on schedule, GWMG said, toward an expected completion in December 2011.
The company has retained East Rand Engineering Services to refurbish the mine access decline, to construct a head gear and winding house, and to install underground infrastructures, like ventilation fans and underground stores.
Demand for rare earths is booming, as despite being used in relatively small amounts, the metals are necessary to the growing production of energy-efficient green products, mobile electronics and electric vehicles.
Deposits of the metals are not actually rare, but high capital costs, difficult metallurgy, marginal ‘heavy’ rare earths grades, and a lack of people with significant rare earths processing experience are major hurdles to bringing new mines to production, bringing GWMG's advanced Steenkampskraal mine to investors' attention.
China currently produces around 97% of global rare earths, but in July of last year, the country announced significant reductions to rare earths export quotas, claiming protection of a strategic and dwindling resource. Since 2006, rare earths prices have increased between 1,000 and 10,000 percent.