Rare earths are critical to the construction of a wide range of electronic products from iPads to electric car motors and are a crucial component in the weapons manufacturing industry. Currently, China controls nearly 95 percent of rare-earth minerals production globally, giving the communist nation 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, a former Soviet state, contains rare earth deposits that rival those of China.
Rare Earths are essential to the production of clean energy technologies such as permanent magnets, hybrid and electric car batteries, solar panels, wind turbines and energy-efficient lighting. Domestic usage and environmental concerns in China are leading to fewer mining permits, fewer exports and rising prices. GTSO President and CEO John Shearer said Friday that the company formed the joint venture with REE in order to capitalize on these market dynamics.
"Stable supplies of rare earths are vital to the security and economy of the U.S., Japan and South Korea," Shearer said. "By acquiring mining claims and operations in Mongolia, we believe we can help solve the global supply crisis while instituting cleaner mining technology to minimize environmental contamination."
According to the joint venture agreement, GTSO will contribute the operating capital for the endeavor with REE contributing its knowledge and product development skills as consideration. The joint venture plans to convey Mongolian mining products overland to railway for transport to the seaport of Vladivostok, Russia, in order to avoid shipping through China. Destination ports for these mining products are set to include the U.S., Japan and South Korea.
Green Technology Solutions commercializes clean and renewable mining technology and products in a sector that includes Molycorp, Inc. (NYSE. MCP), Avalon Rare Metals, Inc. (AMEX: AVP), Rare Element Resources Ltd. (AMEX: REE) and Raytheon (NYSE: RTN).
Green Technology Solutions, Inc. (GTSO) is an OTCQB publicly traded company. OTCQB is the middle tier of the OTC market. OTCQB companies report to the SEC or a U.S. banking regulator, making it easy for investors to identify companies that are current in their reporting obligations. GTSO acquires, develops and implements the newest clean mining technology to enable our partner clients to expand operations throughout the world. Environmental restrictions represent the largest restriction to mining industry growth and operations. GTSO focuses on overcoming these environmental restrictions with brilliant cutting-edge clean mining technology.