Reuters reported that the chief executive of Canada's Great Western Minerals Group sees annual revenue rising more than 900% once its South African rare earth mine comes online in about two years, easing the company's dependence on vulnerable Chinese supplies.

Rare earths are a group of 17 metals that are an essential component in modern technologies such as LCD televisions and electric car motors. But sources of rare earths outside China are scarce with the Asian powerhouse producing more than 97% of the global supply.

Saskatoon, Saskatchewan based Great Western has been buying rare earth oxides from China for 18 years and processing them through a facility in Britain.

Mr Jim Engdahl CEO of Great Western Minerals Group said that its Steenkampskraal mine in South Africa will begin producing 2,700 tonnes of rare earth concentrate by 2013. Once our first mine that we're involved with in South Africa gets online our projections will be somewhere in the vicinity of CAD 170 million to CAD 180 million in terms of revenue. Earnings before taxes would be around CAD 80 million.

Mr Engdahl said that for 2010, the company forecasts revenues of CAD 16 million from its current production of about 500 tonnes of Chinese-sourced rare earth metals and alloys. The company has expanded the British facility to double its capacity in anticipation of production from Steenkampskraal. A second facility in Michigan is being revamped to process up to 2,500 tonnes per year.

He said that demand for rare earths has grown at a feverish pace since China reduced its exports of the metals by 70% in the H2 of 2010. We certainly get approached by a lot of our end users now to ensure that they have a source outside of China. We're getting calls daily from non-clients who want product from us.

(Sourced from Reuters)