According to a recently completed independent geologists report the Jongju “Super Deposit” has an estimated 216.18 million tonnes of TREO, and 3,267 million tonnes of associated Critical Metals (Zr, Nb, Rb, etc.). To put this in context, the discovery of Jongju increases the estimated global reserves of rare earth minerals (Rare earths) by more than 130%. It is assumed that the development of Jongju by PCL will transform the outlook of the global rare earth industry, but will have a profound influence on the economic outlook of the Jongju area as hi-tech and low-tech industries are developed in the region. The focus of PCL in time will be to establish a “Centre of Excellence” in the region with special reference to a centralised processing plant on site, REE research, mining, beneficiation and technological development. Further, PCL has a policy of Sustainable Development where it is mining and in all related activities and responsibilities. Such policy is built into all of the Company’s Financial Models and is provided for accordingly.
No public announcement has been made with regards to results of investigations on the Jongju REE target. The available data on the size and nature of the current Rare Earth market therefore does not include the Jongju REE target.
The current leading company in the rare earth market by reserves and production is China’s Inner Mongolia Baotou Steel Rare Earth Hi-tech Co. Ltd. (Inner Mongolia Baotou) which has a market capitalisation of over $10 billion and produces approximately 60,000 tonnes of TREO per annum and has a reserve base of approximately 16% of the size of PCL. Jongju has in one location more than six times the reserves of Inner Mongolia Baotou along with other significant advantages and therefore has the opportunity to build a company that can become the global leader in the production and development of rare earths and associated critical metals.
Although rare earths have received much publicity recently their true potential is still relatively under-developed due to recent supply and price constraints. As more research is carried out and more is learnt about rare earth element application, many additional uses will come on stream. The rare earth market is at the beginning of a growth curve that will see significant expansion as additional and mass market end-user applications are developed. Rare earths and critical metals are indispensable in electronic, optical, magnetic and catalytic applications. In these applications rare earths play a vital role in environmental protection, improving energy efficiency and enabling digital technology, therefore making rare earths a critical ingredient for everyday life in the 21st century. Leading Japanese, European, Korean and US corporations have developed multiple applications that need rare earths to function. These applications are essential for the current and future automotive, renewable energy and consumer electronics industries. As detailed in the information memorandum there is either inadequate natural resource available locally or the natural resource available cannot be economically extracted, therefore creating the need for these major industrial corporations to form partnerships with rare earth suppliers. Despite rare earths being everywhere in technology, the market is still relatively small in relation to its overall importance as often not more than a trace of rare earth is used to serve a vital function in an overall technology application. There are no substitutes for the lanthanides that make up 15 of the 17 rare earths as they have unique chemical and magnetic qualities that are not found in other elements, even where substitutes exist they are significantly inferior due to rare earths superior miniaturisation characteristics.
PCL’s discovery increases the USGS’s estimated global rare earth reserves estimate by 196% (based on the USGS data, PCL will potentially have 66% of global rare earth reserves).
Rare earths as a collective mining industry was worth $17.5 billion in 2011, but the downstream applications that rely on rare earths are worth more than $4.8 trillion.
PCL have put in place strict corporate governance procedures that ensure the company is compliant with all international regulations at all times.