Did Ukraine lie to the US about mineral deposits?: 'Trump's appetite has been whetted'

12punto FOREIGN NEWS

Bloomberg’s energy and commodities expert Javier Blas noted that Trump was misinformed about rare earth elements, claiming that there is nothing in Ukraine other than 'scorched earth.' Describing it as 'insane' for the Trump administration to think that there are rich mineral deposits in Ukraine, Blas recalled that the US was previously 'mistaken' in Afghanistan as well, believing there were $1 trillion worth of lithium deposits there.

Stating that thinking there are rich mineral deposits in Ukraine is a fantasy, similar to the Afghanistan claim, Blas expressed that no expert or institution has any information suggesting that there are vast resources in the region as claimed.

Pointing out that rare earth elements are used in simple household appliances rather than high-tech products, Blas reported the following:

''For Trump, the importance of rare earth element reserves stems from China's dominance of the global supply.

These elements are used in very small quantities in exotic alloys. Although they are often presented as indispensable for high-tech applications and weapons production, their uses are much more mundane. For example, Dyson Ltd., which produces household appliances, says it uses the element neodymium in the magnets of its vacuum cleaners, and that thanks to this, they produce mechanisms five times more efficient than a Formula 1 engine.''

Sharing the information that the speculations about the earth elements Ukraine possesses were initially started by Ukrainians, Blas stated that the Kyiv administration lied desperately to impress Trump. The energy markets expert argued that Ukraine lost control of the claim after a while and made a miscalculation.

THERE IS NO DATA ON MINERAL DEPOSITS

Blas pointed out that Trump stated on February 3 that Ukrainians possess very valuable rare earth elements. According to Blas, the lie told by Ukraine may have whetted Trump's appetite.

In an interview with Fox News on February 11, Trump emphasized that he 'wants $500 billion worth of rare earth elements,' and Blas made the following comment regarding these statements:

''I was surprised. As far as I know, Ukraine does not have any significant rare earth element deposits, other than small scandium mines. The US Geological Survey, an authority on the subject, does not list Ukraine as a country holding any reserves. There is no such information in any other database commonly used in the mining sector.

Simply put, Trump's 'follow the money' tactic won't work here. At best, the value of all rare earth production in the world is around $15 billion 'per year.' This is equal to the value of just two days of global oil production. Even if Ukraine had massive deposits, they would not be that valuable from a geo-economic perspective.

Let's assume Ukraine could magically produce 20 percent of the world's rare earth elements. That would equal approximately $3 billion annually. To reach the $500 billion Trump suggested, the US would need to secure production in Ukraine for over 150 years. It's complete nonsense.''

MINES IN UKRAINE

Suggesting that the US might be after the iron and coal resources found in Ukraine rather than rare elements, Blas emphasized that Trump's real desire might be the country's other minerals. Ukraine, which has critical mineral deposits rather than rare earth elements, may have to give its minerals such as titanium and gallium to the US as war reparations.

Blas noted the following regarding Trump's demands from Ukraine:

''I see two possibilities: Either Trump is right and I am very wrong, and there are actually many rare earth elements in Ukraine; or Trump spoke incorrectly and meant other minerals instead of 'rare earth elements.'

Let's examine the second option, because it would at least make some sense. Although Ukraine does not have commercial rare earth element deposits, it does have mines containing other minerals. Before its war with Russia, Ukraine produced significant amounts of iron ore and coal. Neither is strategic, but the country was earning a reasonable amount of money from both. So what is the problem? Some mines are currently located in territories conquered by Russia.

Perhaps Trump confused rare earth elements with the much broader concept of 'critical minerals.' Ukraine has titanium and gallium mines. Both are quite valuable and of strategic importance, but controlling both still would not change the geo-economy. And they certainly do not add up to the $500 billion Trump expressed.

Still, the American president referred to rare earth elements decisively; not once, but several times. So, perhaps he knows something the commodities world does not. However, I have not found a reliable source that says Ukraine is full of reserves.''

(Ukrainian President Volodymyr Zelensky announced that he 'would not sell his country' in response to Trump's requests)

News Source: 12punto