Mongolian rare earth deal
Green Technology Solutions (GTS) has signed a Profit Participation Agreement with Mongolian mining and trading company Ar Erkhes, to mine rare earths at three sites in the developing Asian nation.
Rare earths are critical to the manufacture of a wide range of electronic products including lithium batteries, wind turbines and other renewable energy technologies
Currently, China controls nearly 95 percent of rare-earth minerals production globally, giving it a near monopoly over the precious elements' distribution. The vast majority of China's rare earths are mined in the country's Inner Mongolia region, which lies along the southern border of the nation of Mongolia. Many experts believe that Mongolia contains rare earth deposits that rival those of China.
The three mining properties covered in the new agreement are located in the Mongolian provinces of Bulgan, Dornogobi and Tuv. GTS will make monthly payments to Ar Erkhes for the next six months in exchange for a percentage of the net profits generated by rare earths production at the mines. GTS will facilitate the excavation of core samples and arrange for the identification of any and all rare earths present at each site.
"Next week, we plan to begin the process of selecting a reputable mineral lab to analyze core samples from each of the three mining properties," said GTS President and CEO John Shearer. "We're very eager to begin full-scale rare earths production in Mongolia as soon as possible, but the mines' mineral contents must be confirmed and specified by an outside laboratory before we're able to negotiate with potential export buyers."