Ucore Comments on Escalating HREE Supply Concerns in US Capitol
January 13 2014 - 10:02AM
Marketwired
Ucore Comments on Escalating HREE Supply Concerns in US Capitol
HALIFAX, NOVA SCOTIA--(Marketwired - Jan 13, 2014) - Ucore Rare
Metals Inc (TSX-VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or "the
Company") is pleased to comment on multiple recent initiatives in
Washington to address the increasing lack of availability of rare
earth products and magnet-making materials for domestic military
and defense applications.
Concerns regarding the withdrawal of ongoing supplies of
Critical Rare Earth Oxides (CREO's) produced almost exclusively in
China and consumed by US military contractors, has attracted a
number of current legislative initiatives.
The National Defense Authorization Act is currently on the
Senate Legislative Calendar for FY 2014. The Act proposes to
authorize the National Defense Stockpile Manager to acquire several
materials determined to be "strategic and critical materials
required to meet the defense, industrial and essential civilian
needs of the United States." Dysprosium and yttrium, metals
included in the production plan at Ucore's Bokan facility in South
East Alaska, are among the materials to be acquired under the new
Act, using up to US$41 million of the National Stockpile
Transaction Fund.
In January 2014, it was disclosed that the Pentagon had
temporarily waived laws banning the use of Chinese-built components
in U.S. weaponry in 2012 and 2013. The waiver, which has attracted
significant media attention, was for the purpose of keeping the
US$392 Billion F-35 Fighter Program on schedule. Specifically,
Chinese built magnets were used during the last 24 months in
violation of the import restrictions, in order to avoid further
delays with the delivery of the jets. An investigation has now been
ordered into three instances involving the use of prohibited
Chinese components in the F-35 program. The investigation,
authorized by US lawmakers, is being undertaken by the Government
Accountability Office (GAO), and is expected to be completed by
March 1, 2014.
The Critical Minerals Policy Act, submitted by Senators Lisa
Murkowski (R - AK), Ron Wyden (D - Ore), Mark Udall (D - Col.),
Dean Heller (R - Nev.) and 13 others, was introduced in late 2013.
The Act intends to prevent further supply shocks of critical
materials and reduce US dependence on foreign sources through the
revitalization of a domestic supply chain, including domestic
production from near term facilities such as the Bokan facility in
Alaska. The bipartisan bill outlines mineral-specific actions for
several elements, including yttrium and scandium, materials
scheduled to commence production at the Bokan project by as early
as 2017.
The FY 2014 Senate Interior Appropriations Bill is in Continuing
Resolution status until January 15, 2014. Senator Murkowski has now
added language to the Bill re-iterating the US Forest Service's
obligation to provide reasonable access for mining within the
Tongass National Forest, of direct benefit to the Bokan project,
which houses material quantities CREO's important to defense
systems, such as dysprosium and yttrium.
"We're pleased with the ongoing support that the Bokan project
continues to receive by federal lawmakers," stated Jim McKenzie,
President & CEO of Ucore. "All indicators are that the Bokan
facility will be the first and only domestic producer of dysprosium
on US soil when on-site production commences, thereby alleviating
an issue under increasing attention in Washington."
In October 2012, Ucore announced that the United States
Department of Defense (DOD) had contracted with the Company to
conduct a mineralogical and metallurgical study at Bokan. The
program, managed under the Defense Logistics Agency (DLA) has
focused on the prospective development of Bokan, America's highest
grade heavy rare earth resource disclosed under NI 43-101
regulations, to meet the requirements of the Department of Defense
for an ongoing supply of critical heavy REE's. Under the agreement,
Ucore has provided DOD with the most up-to-date data on the Bokan
project's mineralogy and proprietary Solid Phase Extraction (SPE)
nanotechnology research.
Bokan Mountain is the richest domestic source of three heavy
rare earth elements -dysprosium, terbium, and yttrium - which are
critical to several advanced weapon systems, such as stealth
helicopters and precision-guided weapons. Both dysprosium and
yttrium are critical to multiple US defense systems. Dysprosium is
a crucial ingredient in neodymium-iron-boron magnets as a means of
increasing coercivity, applications of which include aircraft
actuator motors in flight control systems, landing gear, and
munitions. Yttrium is critical to the defence industry applications
such as the manufacture of various ceramic and glass materials
required in jet engines. The Joint Strike Fighter (JSF) development
program relies on both Dy and Y as critical input components.
Currently, all of the world's commercially-available heavy rare
earth elements are produced in China. Ongoing production and export
quotas have limited the availability of these materials to global
markets. According to a March 2012 report from DOD, yttrium,
terbium, and dysprosium are all considered to be "critical to the
production, sustainment, or operation of significant United States
military equipment," as well as "subject to interruption of supply,
based on actions or events outside the control of the government of
the United States." Yttrium, in particular, was shown to be in
deficit when considering projected future domestic supply.
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this press release.
About Ucore Rare Metals Inc.
Ucore Rare Metals Inc. is a development-phase mining company
focused on establishing rare metal resources with near term
production potential. With multiple projects across North America,
Ucore's primary focus is the 100% owned Bokan - Dotson Ridge REE
property in Alaska. The Bokan - Dotson Ridge REE project is located
60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince
Rupert, British Columbia and has direct ocean access to the western
seaboard and the Pacific Rim, a significant advantage in developing
near term production facilities and limiting the capital costs
associated with mine construction.
The Bokan property is particularly enriched with heavy rare
earth elements, including the critical elements dysprosium, terbium
and yttrium. Approximately 40% (by weight) of the rare earth
elements contained on the Dotson Ridge property are heavy rare
earth elements, as disclosed in the Company's NI43-101 resource
estimate technical report, filed on April 21st, 2011. The resource
was completed by R. J. Robinson, a consultant from Aurora
Geosciences.
Ucore Rare Metals Inc.Mr. Jim McKenziePresident and Chief
Executive Officer(902) 482-5214www.ucore.com
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