http://pubs.usgs.gov/sir/2010/5220/Here’s a particularly important passage:
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Although rare earth elements are relatively abundant in the Earth’s crust, they are rarely concentrated into mineable ore deposits.
The estimated average concentration of the rare earth elements in the Earth’s crust, which ranges from around 150 to 220 parts per million (table 1), exceeds that of many other metals that are mined on an industrial scale, such as copper (55 parts per million) and zinc (70 parts per million). Unlike most commercially mined base and precious metals, however, rare earth elements are rarely concentrated into mineable ore deposits. The principal concentrations of rare earth elements are associated with uncommon varieties of igneous rocks, namely alkaline rocks and carbonatites. Potentially useful concentrations of REE-bearing minerals are also found in placer deposits, residual deposits formed from deep weathering of igneous rocks, pegmatites, iron-oxide copper-gold deposits, and marine phosphates (table 2).
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Rare earth elements are typically obtained as a byproduct or coproduct of mining other mineral commodities.
When the economic viability of a mining project is assessed, the potential mineral products are divided into principal products and byproducts. The principal product, for example zinc in a zinc mine, contributes most to the value of the minerals produced. Generally, returns from the principal product are sufficient to pay the costs of mining and processing. All other products are referred to as byproducts, whose returns typically bolster the overall profitability of a mine. Where two or more products of essential value are obtained, they are called coproducts. A salient feature of rare earth elements mining is that REE-rich minerals may be byproducts or coproducts of mining other mineral commodities.
Mine production decisions are driven by demand for principal products, not for byproducts. Thus, production of byproduct REE will vary subject to changes in demand for principal products and will be relatively unresponsive to demand for REE. China currently (2010) accounts for about 96 percent of global rare earth elements production (table 7). Of a total production of 120,000 metric tons, about 55,000 metric tons was produced as a byproduct of the Bayan Obo iron mine. This fact means that at least 44 percent of world rare earth elements production is a byproduct. Of the remaining Chinese production, about 25,000 metric tons is produced in southern China as a primary product from ion-adsorption deposits. The status of remaining Chinese production is unclear. The balance of global REE production is as a byproduct. Conceivably, as much as 90 percent of global rare earth elements production is as a byproduct or coproduct.
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