In January 1992, Comrade Deng Xiaping said that “there is oil in the Middle East and there is Rare Earth in China”. China has subsequently developed its rare earth industry to become the current dominant global supplier of rare earths and now supplies over 90% of the market. The Jongju “Super Target” has the potential of six times the reserves of China and will re-transform the Global Rare Earth industry in the near future.
Pacific Century Rare Earth Mineral Limited (“PCL”) is developing the Jongju “Super Deposit” which is assumed to be the World’s largest discovered rare earth deposit and is situated in the Democratic People’s Republic of Korea (“DPRK”). The Jongju “Super Deposit” is being developed in partnership between the Korea Natural Resources Trading Corporation (being responsible for the development of the DPRK rare earth industry) and a private equity company SRE Minerals Limited.
In the agreement between the above-mentioned parties, PCL has the rights to develop all rare-earth element (“REE”) and associated mineral deposits in the region of Jongju in the North Pyongan Province, DPRK. PCL’s rights under the joint venture agreement includes the exploration, mining, beneficiation and marketing of all REE targets in the Jongju are for the next 25 years with a further renewal period of 25 years.