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Industry and Information Bulletins

Industry Bulletin: Avalon shares its perspective on the emerging North American Rare Earths Industry with UWO Business Students and with Chinese Industry Representatives

May 10, 2010

In this Industry Bulletin, we present some highlights from two recent corporate presentations on the emerging North American Rare Earth Industry, one to a predominantly Chinese industry audience in Beijing, and more recently to a MBA student audience at the University of Western Ontario's Richard Ivey School of Business.

Ivey School of Business, London, Ontario, May 4, 2010

At the invitation of the student leadership, Ian London, P.Eng, MBA, who serves as a market development & energy advisor to Avalon, lead the seminar attended by 50 students from the MBA classes of 2010 and 2011. The seminar consisted of presentation by Mr. London followed by extensive discussion.

Some of the areas of significant discussion raised by the attendees revolved around:

  • International trade issues between China and the West;
  • The key building blocks for national and community economic security, including education, research and development, and manufacturing;
  • The need for governments, corporations and investors to re-balance strategic vision, environment performance with nearer term return expectations;
  • Methods of valuing and raising capital for entrepreneurial and junior mining ventures, especially where price discovery may not be transparent; and
  • The best practices of corporate social responsibility and community engagement.

As a leader in the emerging rare earths industry, Avalon is committed to providing educational sessions as part of its commitment to corporate social responsibility. These sessions help inform the broader public, prospective community leaders and industry players (e.g. customers, competitors, policy makers) of the emerging strategic and business considerations relative to the rare earth and clean tech sectors.  Rare earths are the essential vitamins in a future of the green energy and clean technologies. Fostering knowledge and understanding among future leaders is vital.

"The IVEY MBA program prides itself on providing a top quality environment for academic studies with practical exposure to the business world" noted Carolyn Hynds, the MBA 2010 candidate who coordinated the seminar. "The Avalon presentation and interactive discussions provided us with a much clearer understanding of the emerging rare earth industry and green energy economy, and its market and resource development realities, in a transparent, open and interactive manner. We, as future managers and executives, can only provide the needed leadership in sustainable businesses of tomorrow, if we understand the experiences, issues facing and the plans of current industry leaders. The Avalon seminar certainly contributed in that vein."

Asian Metal-sponsored ‘Rare Earth Summit', Beijing, China, April 22-23, 2010

The Rare Earth Summit was attended by approximately 180 delegates from Japan, the U.S., Canada, Brazil, Malaysia, Estonia and China. Security of supply issues with respect to the rare earth elements ("REE") were front and centre at both events. The major themes articulated in Beijing by Chinese producers, processors and policy makers centred on:

  • Western concerns about REE security of supply, emphasizing repeatedly that the West should not complain about Chinese export policies which are designed only to ensure that growing domestic REE demand requirements are met;
  • The fact that China is committed to improving environmental practice;
  • The need for further R&D in the industry to drive improved efficiencies and develop new applications; and
  • The fact that prices should (and will) rise to support these changes.

Essentially, the Chinese delegates underlined the need for other countries to share the responsibility of supplying rare earths to address the perceived geographical supply-demand imbalance, and that China is prepared to provide a stable supply of REE to the market during the transition.

Sales and Marketing Consultant Pierre Neatby represented Avalon at the Summit. In his presentation, titled "A North American view of REE and a Canadian Supply Solution for the Heavy REE," Mr. Neatby discussed examples of new large volume Canadian applications for rare earths, such as permanent magnet generators to capture tidal power in Nova Scotia and run-of the river hydro power in Ontario, as well as recent U.S. Government policy initiatives relevant to REE. These include the tabling of the RESTART Act and the Department of Energy's strategic planning initiative linking green energy technologies to their raw material supply chains.

Both Ian's and Pierre's presentations can be viewed on our website at: http://www.avalonraremetals.com/news_media/industry_presentations/

If you have any comments or questions on this article or the rare earths generally, please do not hesitate to contact the company directly at ir@avalonraremetals.com. Follow us on Twitter at http://twitter.com/avalonraremetal, join our FaceBook page at http://www.facebook.com/pages/Avalon-Rare-Metals-Inc/224623996080?ref=ts or subscribe to our YouTube video feeds at http://www.youtube.com/user/AvalonRareMetals.

ABOUT AVALON RARE METALS INC.
Avalon Rare Metals Inc. (TSX:AVL) (OTCQX:AVARF) is a mineral exploration and development company focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world. Its exceptional enrichment in the more valuable 'heavy' rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications, is one of the few potential sources of these critical elements outside of China, currently the source of 95% of world supply. Avalon is well funded, has no debt and its work programs are progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones. Avalon's performance on community engagement in the north earned it the 2010 PDAC Environmental and Social Responsibility Award.