skip to content

Vancouver, BC – Rare Earth Metals Inc.  (“Rare Earth Metals”, “REM” or the “Company”) (TSX-V: RA; OTCQX: RAREF). Management of the Company is pleased to report an outline of its plans to develop a vertically integrated supply chain in the near future, in the context of the issues facing the rare earth industry. The solution has the potential to position the Company as an industry leader in the rare earth sector by bridging the lack of prospective customer problem facing exploration companies with the lack of diversified supply facing major manufacturing companies.

The Refining Problem

The global rare earth industry currently has certain complex issues facing it and needs solutions involving much more than simply having some 200 companies exploring for rare earth deposits. Rare Earth Metals Inc. is shifting its business focus from exploring for rare earths to developing a vertically integrated supply chain connecting exploration to mining/concentration to separation/refining to major international customers of the individual rare earths. Currently the components of the supply chain are disjointed because the vast majority of the critical separation/refining capability is found primarily in China. As a consequence of the domination by China of the refining stage, manufacturing companies whose products depend on rare earth supply have four choices when sourcing these critical elements:

  1. Continue to obtain refined rare earths from China;
  2. Manufacture products in China;
  3. Design products without or with minimal use of rare earths (impossible in some cases and reduces product performance characteristics in many others); or
  4. Attempt to source rare earth materials from one of the very few refineries situated outside of China.

The volatile and restrictive challenges inherent in the supply chain often result in companies making sub-optimal strategic and product decisions.

The Solution

As a first step, the Company has retained CEC Rare Earth Corporation (“REC”) to assist with developing a vertical integration strategy and plan alternatives. Details of the strategy, business plan and implementation program will be developed over the coming months as REC completes its initial consulting assignment and the Company and REC collaborate on a specific path forward. The Company intends to implement a vertically integrated strategy with the following aspects in order to deliver optimal rare earth product mixes within a short time frame to market:

Identify potential rare earths sources:

  1. Mines (in addition to assessing mines owned by others, the existing Company properties will be assessed as a part of the strategy and could provide lucrative long term supply in the vertically integrated model);
    1. Mixed rare earth concentrates from other processing facilities.
    2. Recycled materials, and
  2. Full capability rare earth refining/separation facilities in stable and suitable geographic locations; and
  3. Enhance relationships with a number of top tier major international companies which depend on rare earths for their market leading products.

As part of the engagement, REC will assist Rare Earth Metals in determining the best sectors and relationships to pursue within the rare earth industry and will conduct prioritization studies to determine prospective supply chain partners with compatible timing, volumes and elements which are looking for longer term solutions.

About REC

REC’s business involves designing, building and operating rare earth refineries with the capability of separating the full spectrum of light and heavy rare earths. Having built multiple separating rare earth refineries, REC’s subcontractors have demonstrated the technical expertise required for the refinery stage of the integrated solution. Recently REC’s subcontractors substantially completed, outside of China, a “full spectrum” rare earth refinery having a 3,000 MT per year capacity.

REC has compiled two databases: (i) exploration companies and (ii) international purchasers of separated rare earths. The Company will have full access to these databases as part of its relationship with REC.

REM is an important client and strategic partner for REC in the implementation of its business plan and deployment of REC’s expertise in the rare earth sector. REC’s commitment to its relationship with the Company is reflected in the recent appointment of REC’s former CEO as the CEO of the Company and two of REC’s senior personnel having joined the Company’s board of directors.

About Rare Earth Metals Inc.



“Tracy A. Moore”
CEO & President




Rare Earth Metals Inc.

Tracy A. Moore
CEO & President
Phone: (604) 685-5535

Michael Stares
Phone: (807) 623-6840

Corporate Communications:
Matt Witiluk, C.A.
Phone: (807) 623-6840
Fax: (807) 623-9526

Standard and Poor’s Customer Contact:
Richard Albanese
(212) 438-3647

Standard and Poor’s Media Relations Contact:
Michael Privitera
(212) 438-6679



To Top