Mining and Exploitation of Rare Earth Elements in Africa as an Engagement Strategy in US Africa ...

88 Pages·2011·0.59 MB·English

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NATIONAL DEFENSE UNIVERSITY

JOINT FORCES STAFF COLLEGE

JOINT ADVANCED WARFIGHTING SCHOOL

MINING AND EXPLOITATION OF RARE EARTH ELEMENTS IN AFRICA AS AN
ENGAGEMENT STRATEGY IN US AFRICA COMMAND

By

Eugene V. Becker

Lt Col, USAF

ABSTRACT
Rare earth elements are a key ingredient in high-technology products that are critical
to defense, energy and other industries that impact national security and economic
viability. The United States enjoyed a monopoly in rare earth mining and exploitation
until the late 1990s when China gained monopoly status. They now supply over 95% of
rare earths to the world. China’s explosive economic growth has put them on a path to
consume 100% of all the rare earths they produce in just a few years, leaving nothing for
export. Recognition of this fact has led nations all around the world to seek out new
sources of rare earths to prevent the loss of these key elements and the disruption in
production of end products critical to their interests.
This thesis proposes that the United States, through a whole of government approach
including United States Africa Command, can achieve several national objectives by
assisting African nations in mining and exploitation of rare earths. This assistance can
serve to increase the supply of rare earths as well as improve the governance, human
development, and economic well-being of African nations through an increase in
revenue. There are many risks which must be weighed before embarking in rare earth
mining and exploitation as part of a broader engagement strategy. The likelihood of
success must be carefully considered to prevent failure of the engagement strategy, thus
negatively impacting both the U.S. and the partner nation.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ...................................................................................... 5
CHAPTER 2: U.S. STRATEGIC INTERESTS IN AFRICA ........................................... 8
National Level Guidance ......................................................................................... 8
United States Africa Command Theater Strategy .................................................... 9
Rare Earth Elements ............................................................................................... 10
CHAPTER 3: RARE EARTH ELEMENTS AS A STRATEGIC RESOURCE ............ 13
Classification and Description ............................................................................... 13
Strategic Importance of Rare Earth Metals ............................................................ 16
Rare Earth Elements in the United States .............................................................. 20
Catalog of Current U.S. Rare Earth Mining and Production ................................. 28
Rare Earth Elements in China ................................................................................ 31
Catalog of Current Chinese Rare Earth Mining and Production............................ 38
Catalog of Current Rare Earth Mining and Production in Greenland .................... 41
Catalog of Current Rare Earth Mining and Production in Canada ........................ 42
Catalog of Current Rare Earth Mining and Production in Russia .......................... 43
Catalog of Current Rare Earth Mining and Production in North Korea ................ 43
Catalog of Current Rare Earth Mining and Production in Germany ..................... 44
Catalog of Current Rare Earth Mining and Production in Australia ...................... 44
CHAPTER 4: AFRICA AS A REPOSITORY OF RARE EARTH ELEMENTS .......... 48
Current State .......................................................................................................... 48
Madagascar ............................................................................................................ 48
Malawi ................................................................................................................... 49
Namibia .................................................................................................................. 49
Sierra Leone ........................................................................................................... 50
South Africa ........................................................................................................... 50
Zambia ................................................................................................................... 50
CHAPTER 5: CASE STUDY: EXPLOITATION OF COAL IN COLOMBIA ............ 51
Applicability to Africa ........................................................................................... 51
Background ............................................................................................................ 51
The El Cerrejon Model........................................................................................... 52
CHAPTER 6: U.S. STRATEGIC APPROACHES: A WAY FORWARD ................... 57
1
Rare Earth Element Exploitation Pitfalls and Risks .............................................. 57
The Current State of Rare Earth Element Exploitation in Africa .......................... 59
Risk to the United States Government and USAFRICOM .................................... 59
Strategies for Engagement ..................................................................................... 60
Decision Matrix ...................................................................................................... 64
CHAPTER 7: CONCLUSION ........................................................................................ 67
APPENDIX A ................................................................................................................... 70
BIBLIOGRAPHY ............................................................................................................. 74
VITA .................................................................................................................. 80

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