RARE EARTHS1/ (Data in metric tons of rare-earth oxide (REO) content, unless noted) Domestic Production and Use: Rare earths were mined by one company in 1995. Bastnasite, a rare-earth fluocarbonate mineral, was mined as a primary product in California. Domestic production of monazite ceased at yearend 1994 as a result of decreased demand for thorium-bearing minerals. The United States was a leading producer and processor of rare earths and continued to be a major exporter and consumer of rare-earth products. Domestic ore production was valued at an estimated $82 million. Refined rare-earth products were produced primarily by three companies; one with a plant in Mountain Pass, CA, another with operations in Phoenix, AZ, and Freeport, TX, and a third with a plant in Chattanooga, TN. The estimated value of refined rare earths consumed in the United States was more than $500 million. Principal uses were in petroleum fluid cracking catalysts, automotive pollution control systems, metallurgical applications, glass polishing, glass additives, ceramics, permanent magnets, phosphors for color television and fluorescent lighting, laser crystals, and electronics. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production: Bastnasite concentrates2/ 16,500 20,700 17,800 20,700 28,700 Monazite concentrates W W W W W Imports:3/ Thorium ore (monazite) -- -- -- -- 22 Rare-earth metals, alloys 271 352 235 284 406 Cerium compounds 545 806 1,270 1,890 3,230 Mixed REO's 892 295 249 354 570 Rare-earth chlorides 1,550 728 1,080 2,410 1,270 Rare-earth oxide, compounds 2,770 3,100 3,730 5,140 5,470 Ferrocerium, alloys 83 94 105 92 88 Exports:3/ Thorium ore, monazite -- -- 3 27 -- Rare-earth metals, alloys 71 44 194 329 456 Cerium compounds 1,370 1,930 1,620 4,460 4,750 Other rare-earth compounds 1,790 1,310 1,090 2,410 1,610 Ferrocerium, alloys 1,860 2,430 4,270 3,020 4,040 Consumption, apparent4/ 22,100 21,400 17,000 18,200 29,400 Price, dollars per kilogram, yearend: Bastnasite concentrate, REO basis 2.87 2.87 2.87 2.87 2.87 Monazite concentrate, REO basis .93 .41 .40 .46 .45 Mischmetal, metal basis 11.02 12.68 12.68 12.68 12.68 Stocks, producer and processor, yearend W W NA NA NA Employment, mine and mill 411 372 352 350 280 Net import reliance 4/ 5/ as a percent of apparent consumption 25 33 E E 2 Recycling: Small quantities, mostly permanent magnet scrap. Import Sources (1991-94): Monazite: Australia, 100%. Tariff: Item Number Most favored nation (MFN) Non-MFN6/ 12/31/95 12/31/95 Thorium ores and concentrates (monazite) 2612.20.0000 Free Free. Rare-earth metals, whether or not intermixed or interalloyed 2805.30.0000 5.0% ad val. 31.3% ad val. Cerium compounds 2846.10.0000 6.9% ad val. 35% ad val. Mixtures of REO's except cerium oxide 2846.90.2010 Free 25% ad val. Mixtures of rare-earth chlorides, except cerium chloride 2846.90.2050 Free 25% ad val. Rare-earth compounds, individual REO's (excludes cerium compounds) 2846.90.8000 3.7% ad val. 25% ad val. Ferrocerium and other pyrophoric alloys 3606.90.3000 5.9% ad val. 56.7% ad val. Prepared by James B. Hedrick, (703) 648-7725. RARE EARTHS Depletion Allowance: Percentage method, Monazite, 22% on thorium content and 14% on rare-earth content (Domestic), 14% (Foreign). Bastnasite and xenotime, 14% (Domestic and Foreign). Government Stockpile: Stockpile Status--9-30-95 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 REO in sodium sulfate -- 457 -- 457 Events, Trends, and Issues: Domestic demand for rare earths in 1995 was estimated to be higher than in 1994. Compared with 1994, the use of rare earths in most end uses increased as the domestic economy improved. Rare-earth prices remained competitive throughout 1995, although a slight firming of the prices from China was reported in the first half of the year. China remained a major source of separated rare-earth compounds and alloys and is expected to continue as a major world supplier. The Third International Conference on Rare Earths Development & Application was held in Baotou, Inner Mongolia, China, on August 21-25, 1995. The 21st Rare Earth Research Conference is scheduled to meet in the United States in Duluth, MN, on July 7-11, 1996. World Mine Production, Reserves, and Reserve Base: Mine productione/ Reserves7/ Reserve base7/ 1994 1995 United States 8/ 20,700 8/ 28,700 13,000,000 14,000,000 Australia 3,300 3,000 5,200,000 5,800,000 Brazil 400 400 280,000 310,000 Canada -- -- 940,000 1,000,000 China 8/ 30,600 30,000 43,000,000 48,000,000 India 2,500 2,500 1,100,000 1,300,000 Malaysia 8/ 234 250 30,000 35,000 South Africa 400 400 390,000 400,000 Sri Lanka 120 120 12,000 13,000 Thailand 150 150 1,000 1,100 Former Soviet Union 6,000 6,000 19,000,000 21,000,000 Zaire 28 30 1,000 1,000 Other countries 5 5 21,000,000 21,000,000 World total (rounded) 64,500 72,000 100,000,000 110,000,000 World Resources: Rare earths are relatively abundant in the Earth's crust, but discovered minable concentrations are less common than for most other ores. It is expected that substantial additional resources will be discovered as the industry enters its fourth decade of major industrial expansion. U.S. and world resources are contained primarily in bastnasite and monazite. Bastnasite deposits in China and the United States constitute the largest percentage of the world's rare-earth economic resources, while monazite deposits in Australia, Brazil, China, India, Malaysia, South Africa, Sri Lanka, Thailand, and the United States constitute the second largest segment. Xenotime, rare-earth-bearing clays, loparite, phosphorites, apatite, eudyalite, secondary monazite, cheralite, and spent uranium solutions comprise most of the remaining resources. Undiscovered resources of rare earths are believed to be very large relative to expected demand. Substitutes: Substitutes are available for many applications, but generally are less effective. e/Estimated. E Net exporter. NA Not available. W Withheld to avoid disclosing company proprietary data. 1/Data includes lanthanides and yttrium, but excludes most scandium. See also Scandium and Yttrium. 2/As reported in Unocal Corp. annual reports and as authorized from Molycorp personnel. Data rounded to three significant digits. 3/REO equivalent or contents of various materials were estimated. Data from Bureau of the Census. Data rounded to three significant digits. 4/Monazite concentrate production was not included in the calculation of apparent domestic consumption and net import reliance. Data rounded to three significant digits. 5/Defined as imports - exports + adjustments for Government and industry stock changes. 6/See Appendix B. 7/See Appendix C for definitions. 8/Number reported in literature or from company representatives. Mineral Commodity Summaries, January 1996