Green Technology Solutions, the innovative clean mining company with specific proficiencies in recovering rare earth, gold and other materials without the typical environmental impact associated with such recovery, reported today the signing of a letter of intent with Ar Erkhes, LLC, whereby GTSO will participate in a profit arrangement focused on excavating and shipping rare earth ores out of Mongolia and into South Korea.
This move comes fast on the heels China’s own move to limit output of rare earths and would effectively leap frog the deliberate limitations placed by China, which represents 95% of global supplies despite having only some 30% of planet-wide resources. The LOI stipulates that GTSO will conduct the due diligence required at a total of three rare earth mining sites in Mongolia, in order to shore up the profit participation agreement with Ar Ekhes.
The Company plans to ship an initial 20-ton load of rare earths to Seoul for mineral analysis within the week, marking the first of many more planned rare earth shipments out of Mongolia and into South Korean, Japanese and US markets. Excavation officially kicked off today as well at the first of the three sites, the Avdrant mine in the Tuv Province of Mongolia, where rail cars will be used to get the material to the international port in Vladivostok, Russia for shipping by sea to South Korea.
Rare earth ores have shot up in price since the move by China to limit production through the reduction of mining licenses issues, cutting of quotas for production and the imposition of heavier taxation. This situation, combined with rapidly rising global demand for rare earths, which are critical for next generation green technologies ranging from electric vehicle batteries to wind turbine generators and photovoltaic solar cells, has created a huge opportunity for GTSO.
By offering environmentally sound methodologies and techniques for ore extraction, the Company is also able to present potential development sites with a clear advantage, giving emerging areas like Mongolia, the Republic of Congo and others a chance to adopt green mining initiatives well ahead of industrial peak.
President and CEO of GTSO, John Shearer, spoke of the diligent efforts by GTSO personnel over the last year or so leading up to this milestone for the Company’s footprint in Mongolia and the upcoming announcement of a completed PPA with Ar Erkhes, which will signify the beginning of the opening of a key new input channel of rare earths for the US and her allies. Shearer noted the inundation of inquiries into rare earth availability via Mongolia at the recent International Rare Earth Summit in China last week, explaining that global demand for rare earths continues to crest to new highs and that the Company was steadfastly pushing to open up the pipeline to Mongolia’s abundant rare earth sources, in order to strike while the iron is hot.