Arafura (ASX:ARU) Nolan Rare Earths Prices Surged
Sydney, July 27, 2010 AEST (ABN Newswire) - Australia-based mineral explorer Arafura Resources Limited (ASX:ARU) said based on latest rare earths prices published by Metal Pages, average valuation for rare earths from its Nolan project has increased 100 per cent to US$22.23/kg since the December quarter in 2009.
Pricing has increased further to new industry high levels since 7th July when the China Ministry of Commerce announced Rare Earths export quotas for the 2nd half of 2010.
China controls approximately 95 per cent rare earths supply of the world needs for these strategic materials and has decided to cut the export quota this year.
Arafura says the impact of higher prices is not significant as rare earths constitute only a small portion of the cost of finished products. More price rises are thought likely if China continues to restrict exports in the interests of preserving resources for domestic manufacturing.
The company is well placed to secure sales at superior prices for their rare earths products in this climate of ever-tightening supply with increasing demand, said Arafura.
Asia Business News Asia Bureau
Arafura Resources Limted