Jack Lifton told delegates attending the 2010 Mining Indaba in Cape
Town that 2010 was already shaping up as the year of rare metals.

Rare-earth metals are critical technology metals used in the
manufacturing of hybrid cars, super alloys used in the defence
industry, cellphones, large wind turbines, missiles and computer
monitors.

Lifton said that rare-earth metals were the "newest great interest" amongst investors, primarily the result of growing demand.

The demand for rare-earth metals had resulted in a significant increase in the number of junior miners.

In the last year alone, Lifton stated that more than 100 junior
miners have announced over 150 different rare-earth mining plays.

These were just the private ventures that have gone public as
initial public offerings, or have changed the direction of their
existing listed entity, to take into account rare earth "discoveries"
or acquisitions.

Interestingly, Lifton noted that the rising demand had not increased supply.

The probability of an actual supply increase is dependent on at
least a dozen variables, none of which had to do with the share price
of the junior miner being analysed, he said.

The supply of rare earths during the next decade, could only be
maintained and increased by those which were already producing rare
earths, or those that had produced them before and could reactivate
their mines, or miners that had been developing good properties for
many years already.

Significantly, Lifton predicted that there would be no increase in
rare-earth metal production outside China. The Asian giant currently
accounted for 95% of rare earth-metal production.

Source: Metalsplace.com