North Korea, China and rare earths…connecting dots

Posted: January 22, 2014 in Uncategorized
Tags: ,

Last year North Korea purge of the powerbroker uncle, a close friend of China, (also Kim Yong-un recalled home a lot of businessmen doing work with China) left many wondering what was happening.

Surely it is about consolidation of power. But the North Korean leader is yes a terrible dictator, but not stupid.

I just found the news that North Korea made a co-operation agreement with the English company SRE Minerals forming a newco Pacific Century Rare Earth Mineral Limited.

Delving in the news one finds that recent studies have shown that North Korea has 6 times the rare earth quantities that has China (which has, now, 90% of the global reserve of rare earths).

This clearly places North Korea in direct competition with China and, suddenly, on the economic radar of South Korea, Japan and USA as rare earths minerals are mainly used in electronics (TVs, mobile phones and weapon delivery systems).

So the “dismissal” of Chinese ties could signal a new direction for North Korea.

It is just a theory, but with a logical sense. It is a poor country sitting on an estimated 6 trillion dollar bonanza, one competitor, China, and many buyers South Korea, Taiwan, Japan, US, Europe, India…

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