Saturday, May 6, 2017

"Bonafide" - ZIM Sovereign Rate Overview 5/6/17

Africa is ancient. 
The oldest known continent on the earth's surface. As such, many of its sub-terrainian rock formations are incredibly dense and loaded with valuable minerals.

Now the term "Rare Earth Element" (REE) is commonly used to describe 15 chemically similar, lanthanide elements which appear together towards the bottom of the Periodic Table. 

2 other elements, yttrium and scandium, which have similar chemical properties, are often also referred to as rare earths.

REEs can be divided into "light" rare earths and "heavy" rare earths, both are present to varying degrees in all rare earth deposits. 

REEs are therefore recovered and processed together before sequential separation into individual rare earth elements. 

Prices for individual REEs in pure oxide form can vary significantly with, generally speaking, the heavy rare earths trading at higher values.

The oxides produced from processing rare earths are collectively referred to as rare earth oxides.

Although REEs are relatively common in the earth’s crust, they often do not occur in high enough concentrations, or occur along with high levels of radioactive elements to make their extraction economic. 

The oxides that are produced from processing the rare earth elements constitute the basic material that can be sold to the market or further processed into metals or alloys.

At present almost all rare earth metal production comes from China and Mongolia, with Chinese output accounting for over 95% of global production. 

Mines and processed REEs are then used in the manufacture of a wide variety of consumer electronics, green technology and transportation industry. 

This need for continuous REE exports has been realized by the US, Japan and the EU who are all now seeking new sources of REE mining from companies outside of China.

Because there are 2 principal uses of REEs: 1) magnets and 2) phosphors, which accounts for 70% of the value while accounting for just 30% of rare earth element output; it has allowed China to corner the market worldwide. 

Other major rare earth mineral application categories include luminescence, metal alloy/batteries, catalysts and glass and polishing and ceramics.

REEs have also emerged in some minerals such as tantalite and lithium, that are considered to be ‘rare earth minerals’ but more plentiful. They are turning into the minerals of tomorrow because of rapid advancement in modern technologies (some of which have yet to be released into mass production). 

Tantalite is at the moment being used on China’s railway systems as well as in the production of information communication technology equipment such as cellphones. And among other functions, lithium is used in the production of electric car batteries. 

In 2016, the Industrial Development Corporation (IDC) said that Zimbabwe is a top five lithium producer in the world, with rich untapped, surface deposits waiting to be mined.

But given the advanced age of current Zimbabwe President Robert Mugabe (94), there is much speculation as to what happens after he dies or retires. 

One suggestion is that Zimbabwe will be fast tracked in from the cold economically, and both China and Russia will provide the necessary mining funds (and technology) to this unjustly repressed nation (due to crippling western banking and export sanctions) and help rebuild Zimbabwe into something closer to a Republic of South Africa model. 

Under this approach, Zimbabwe’s abundant natural resources will be quickly surveyed, and where commercial, brought quickly into production and then sold onto the open global market. All future products of the world will require these REEs, including children's toys, medical devices, food supply, environmental housing and progressive energy / waste solutions.

This will create a great scramble for Africa’s most vast deposits of natural and critical resources, as the world’s largest mining companies from Russia and China who are already in-country and have made all the initial "ramp up" investments, will look to permanently corner both the raw material and distribution chains. 

Zimbabwe is already the largest lithium producer in Africa, and the world’s 5th top lithium-producing country. And they are expected to slot into second by 2025 behind only China. But China is committed to controlling the price of lithium and thus it's supply and demand.

This alone will neutralize any technological advantage the western world had over the eastern world. And it will empower people of color like never before in the history of humanity.

And as soon as 2020, a reformed Zimbabwe will again be the leading economy in Africa and premier mineral producers of the world. 

Because Zimbabwe has the 2nd largest deposit of platinum in the world; 30% of all known global alluvial (raw) diamonds reserves; largest known gold deposits in Africa (13 million metric tonnes); plus vast base metal deposits such as nickel, copper, zinc, iron ore and lead; as well as a plethora of industrial minerals like limestone, phosphate, clay and dolomite.

And most importantly, 90% of all Zimbabwe's in-ground tangible assets are still classified as un-mined. 

This plain fact in combination with the global market for REEs expected to double every 3-5 years over the next 5 decades, makes for an economic launch pad unseen in the history of modern finance--and all 100% hard asset backed.

Making Zimbabwe's future earning potential nearly unlimited in modern times, and logically why a six figure plus T1 sovereign rate or central banking holding value not only a bonafide price point on trading floors worldwide, but a conservative opening estimate given the certain abundance that lay ahead.

God is with us.

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