Wednesday, April 25, 2012

Madagascar - Rare Earths Might Boost the Island Economy

China is the main producer of rare earths which are crucial to modern electronic chipsets. But for strategic reasons, they decided 8 months ago to stop their exportations of the mineral. A much easier to exploit source than the Chinese's has been discovered in Madagascar, greater than most of the nowadays best mines, as well.
That could mean a significant boost of Madagascar economy, in the short term. But it could raise significant environment (diverse pollutions)  and social issues (deportation of the population) yet.
Combined with a political unrest due to a coup which was backed by sarkozy's france, it's more of a bad news than a good one. Just the pending rosewood logging issue, rather smaller than a rare earths exploitation by Chinese mafias over there, has shown how fragile Madagascar remains. Likely that's why major and less important mining companies, could appreciate V new way to spoil local population.
Arguably, as it was proved everywhere on the globe, being an haven of raw materials, IS NOT A BLESSING at all.
Joetke's Hub Copyright April '12 All rights reserved

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