Great Western Minerals Group Assesses Latest Chinese Rare Earths Export Reduction
SASKATOON, SASKATCHEWAN -- (Marketwire) -- 07/19/10 -- Great Western Minerals Group ('GWMG' or the 'Company') (TSX VENTURE: GWG) (OTCQX: GWMGF) (PINK SHEETS: GWMGF) today commented on the most recent of a series of export reductions from China.
'This export scale-back from China is simply the latest in a continuous reduction in their export quotas,' stated GWMG President and Chief Executive Officer Jim Engdahl. 'The 'shrinking supply scenario' is precisely what we projected when we developed our business model that includes GWMG's Rare Earths processing capacity, our planned mining inputs from Steenkampskraal and our exploration properties in North America. We foresaw reductions in exports from China and exponentially increasing demand globally. And that is precisely what is happening.'
-------------------------------------------------------------------------
Chinese Export Quotas 2005-2010(ii)
-------------------------------------------------------------------------
RE Export
Year Quota(i) % Change Demand Outside China Surplus (Shortfall)
---------------------------------------------------------------------------
2005 65,609t 48,000t 17,609 t
---------------------------------------------------------------------------
2006 61,821t -6% 53,000t 8,821 t
---------------------------------------------------------------------------
2007 59,643t -4% 55,000t 4,643 t
---------------------------------------------------------------------------
2008 56,939t -5% 54,000t 2,939 t
---------------------------------------------------------------------------
2009 50,145t -12% 25,000t 25,145 t
---------------------------------------------------------------------------
2010 30,258t -40% 53,000t (22,742 t)
---------------------------------------------------------------------------
(i) Includes local and foreign-invested company quotas
(ii) Source: IMCOA, Metal Pages
Adding a punctuation mark to the six year trend line, quotas for Rare Earths exports from China have been reduced from 22,282 tonnes in the first half of 2010 to only 7,976 tonnes for the second half.
'Great Western Mineral Group's plans to bring the Steenkampskraal mine back into production are certainly validated by this latest decision from China,' stated Engdahl. 'Our business model, with Rare Earths processing capacity already housed inside our company, will be bolstered by providing our own Rare Earths inputs. This will make Great Western Minerals Group unique outside of China. It will also make GWMG an exceptionally strong performer in the Rare Earths sector, given our fully integrated business model.'
Jim Engdahl, President and CEO
Great Western Minerals Group Ltd. is an integrated Rare Earths producer. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly-owned subsidiaries Less Common Metals Limited in Birkenhead, UK and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG holds an option with respect to the former Rare Earths producing Steenkampskraal mine in South Africa as well as seven Rare Earth exploration and development properties in North America.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as 'expect', 'may', 'could', 'anticipate' or 'will' and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the satisfaction by GWMG of the conditions required to exercise the Steenkampskraal option, receipt of all required approvals and risks, uncertainties and other factors that are beyond the control of GWMG, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's current annual information form.
CUSIP: 39141Y 10 3
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Great Western Minerals Group Ltd.
Dwight Percy
Manager of Investor Relations
(306) 659-4500
info@gwmg.ca
www.gwmg.ca
Great Western Minerals Group Ltd.
226 Cardinal Crescent
Saskatoon, SK S7L 6H8