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Date : January 27, 2014
Econonic Potential of NK's Rare Mineral Reserves
   http://www.voanews.com/content/north-korea-rare-earths-game-changer/18 [1262]
A recent geological study indicates that North Korea could hold approximately 216 million tons of rare earth minerals used in electronics such as smartphones and high definition televisions. This discovery would more than double global sources and be six times larger than reserves in China, the current market leader. A British Islands-based private equity firm SRE Mineral Limited announced the study results in December along with a 25-year deal to develop the deposits in Jongju (northwest of Pyongyang). If sources are confirmed, North Korea could take a leading role in the rare earth mineral industry and challenge Chinas current monopoly.

North Koreas mineral wealth has long been estimated to be worth trillions of dollars; however, enormous political hurdles stand in the way of the potential benefits. North Koreas controlled economy, isolation, and sanctions have left its infrastructure in tatters, with poor roads and unreliable energy supplies. Foreign mining companies would have to adjust to these conditions and factor in additional costs and political risks when planning economic ventures in North Korea. Furthermore, Leonid Petrov, a Korean studies researcher at Australian National Studies Universitys College of Asia and the Pacific, said that Pyongyang has no interest in making necessary reforms to sustain foreign investment. Foreign investment could potentially jeopardize Kim Jong Un's regime and Pyongyang seems unwilling to risk change by opening up its mining sector. It's most likely that North Korea will continue selling minerals to China to earn foreign currency for elites, as the current political landscape suggests that survival is more important than development in North Korea. 

Other analysts question the size of the deposit. Choi Kyung-soo, president of the North Korean Research Institute in Seoul is among these skeptics and stated that the reserve is unlikely to be as large as rumors suggest. The US Geological Survey commented that there is insufficient information to confirm the significance of North Korean rare mineral reserves. 

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