Dear Editor,
It is not unusual for politicians to exaggerate their policies. However, if these policies fail to materialise, the people deserve to know why.
Phillip Paulwell boldly declared that the discovery of rare earth minerals in Jamaica could be a possible game-changer for the economy. The Government even embarked on a partnership with a Japanese company. But Paulwell failed to explain the global context in which the industry operates.
They may be called rare, but rare earth minerals have been produced in several countries, including India, and Jamaica does not have a competitive advantage in the production of rare earth minerals.
They may be called rare, but rare earth minerals have been produced in several countries, including India, and Jamaica does not have a competitive advantage in the production of rare earth minerals.
After China restricted exports in 2010, it was anticipated that prices would go up due to scarcity. This was a major reason for Japan to find sources outside of China. Due to the anticipation of higher prices, in the aftermath of China's decision, other countries decided to tap into the industry. For example, Molycorp and Australia's Lynas Corporation ramped up investments and created new processing facilities. But with increasing competition, supply exceeded demand and prices plummeted. China's market share now stands at 70 per cent.
These elements are not really rare. However, the process to extract, refine and process them requires a significant investment. Phillip Paulwell should tell the people of Jamaica the truth, he oversold the project and the reality is that we do not have the resources to develop this industry without foreign expertise.
Lipton Matthews
lo_matthews@yahoo.com
Why has Paulwell really gone silent on rare earth minerals?
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It is not unusual for politicians to exaggerate their policies. However, if these policies fail to materialise, the people deserve to know why.
Phillip Paulwell boldly declared that the discovery of rare earth minerals in Jamaica could be a possible game-changer for the economy. The Government even embarked on a partnership with a Japanese company. But Paulwell failed to explain the global context in which the industry operates.
They may be called rare, but rare earth minerals have been produced in several countries, including India, and Jamaica does not have a competitive advantage in the production of rare earth minerals.
They may be called rare, but rare earth minerals have been produced in several countries, including India, and Jamaica does not have a competitive advantage in the production of rare earth minerals.
After China restricted exports in 2010, it was anticipated that prices would go up due to scarcity. This was a major reason for Japan to find sources outside of China. Due to the anticipation of higher prices, in the aftermath of China's decision, other countries decided to tap into the industry. For example, Molycorp and Australia's Lynas Corporation ramped up investments and created new processing facilities. But with increasing competition, supply exceeded demand and prices plummeted. China's market share now stands at 70 per cent.
These elements are not really rare. However, the process to extract, refine and process them requires a significant investment. Phillip Paulwell should tell the people of Jamaica the truth, he oversold the project and the reality is that we do not have the resources to develop this industry without foreign expertise.
Lipton Matthews
lo_matthews@yahoo.com
Why has Paulwell really gone silent on rare earth minerals?
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