Price Bubble Seen in Rare Earth Metals

Source:

"Mining make sense, but prices at this level are unsustainable."

A price bubble has developed in the market for rare earth metals used to build components for the iPhone, electric cars and a range of other products, raising the prospect of a steep decline, the head of Canada's oldest rare earth operation said.

"At the end of the day, rare earths are not that rare," said Constantine Karayannopoulos, chief executive of Neo Material Technologies.

"Bubble economics aside, there just isn't enough value in the ground to justify digging the stuff up and processing it."

He said at today's prices, mining projects make sense, "but I also think prices at this level are unsustainable."

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