FORUM

REE overhype risks undermining investor confidence

In January, Swedish iron ore miner LKAB announced it had discovered Europe’s largest rare earths deposit, with over 1 million tonnes total rare earth oxide (TREO) content, conveniently located next to its existing iron ore mine. The announcement, which received a good deal of breathless coverage in the press, also underlined a problem for the rare earth industry. The way in which rare earth exploration results and resource estimates are discussed tells investors almost nothing about the potential economic prospects of such projects.