Russia’s Resources, Part 2 of 2

Getting through the list of things Russia has and we need. [The Rude Awakening] May 25, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Russia’s Resources, Part 2 of 2 - Getting through the query of Russia’s resources. - Are diamonds just a girl’s best friend? - What do we need cobalt for? [Biden’s BIG LIE Could Devastate Millions]( [Click here to learn more]( For far too long Biden and the Dems have been LYING to you… But this time they’ve gone too far! [This despicable “SCAM”]( – perpetrated by the highest levels of government… Is a danger to you and every American citizen. That’s why today… [>>This Is Your Chance to Get Your Revenge!<<]( This is your BEST chance to stick it Biden and the Dems… And possibly making a fortune in the process. [Click here to learn the truth NOW](. [Click Here To Learn More]( [Sean Ring] SEAN RING Good morning on this fine Thursday from Northern Italy. Today, we’ll finish the question William S. asked about Russian resources with respect to American ones. To remind you what that question was, here it is: I just read your morning missive, “The Vacuum Tube in the Coal Mine.” At the end, you list 10 natural resources Russia has in abundance, but we do not in the U.S.: “Here are 10 natural resources that Russia has in abundance that are not as abundant in the United States: - Natural gas - Crude oil - Nickel - lialladium - lilatinum - Diamonds - Timber - Rare earth elements - Vanadium - Cobalt I call baloney on some of these, namely, natural gas, crude oil, and rare earth elements. We have natural gas in overflowing abundance. We still have lots of crude oil both within the contiguous US, offshore, and in and off the coast of Alaska. Similarly, we have large, known deposits of rare earth elements. We have timber in abundance. The problem is, like many things, federal and, in some instances, state regulations make it cost-prohibitive or outright prohibit our logging, energy, and mining industries from accessing them. I am not knowledgeable about the other items in your list, so will not comment. Perhaps you know if the situation is the same for those. William S Today, we go through each, from diamonds to cobalt. Diamonds [pub] Credit: [mining.com]( Russia is far and away number one when it comes to diamond reserves. The United States isn’t even on this list. Sure, we know diamonds mostly from their use as jewelry. But here are another four reasons to worry about a lack of diamonds: - Industrial Applications: Due to their exceptional hardness and thermal conductivity, diamonds are utilized in various industrial applications. - Electronics and Technology: Diamonds have unique electrical properties that make them useful in advanced electronics. - Medical and Scientific Instruments: Diamonds find applications in medical and scientific instruments. - Art and Decoration: Diamonds are occasionally used in art and decorative pieces due to their beauty, rarity, and perceived value. Timber Here are the [world’s largest timber reserves]( - Russia: 815 million hectares. Russia has vast forested areas. - Brazil: 496 million hectares. Brazil is home to the Amazon rainforest, one of the world's largest and most biodiverse forests. - Canada: 347 million hectares. Canada is known for its extensive forested areas, particularly in British Columbia, Ontario, and Quebec. - United States: 309 million hectares. The United States has substantial timber resources across various states, including Oregon, Washington, and Alaska. - China: 219 million hectares. China has significant timber resources; however, unsustainable logging practices and increased domestic demand have led to concerns about the sustainability of its timber reserves. Russia has more than double the US’s timber resources. [Act Fast – Controversial Video Will Be Pulled Offline Thursday Night]( Due to the confidential nature of [this new video]( we will be pulling it offline on Thursday night. And because [what you’ll discover in this video]( could give you the chance to change your life forever, I suggest you set aside a moment and watch it right away. You only have until Thursday night to take action, or you could get left behind forever. [Click here now for access.]( [Click Here To Learn More]( Rare earth elements As for rare earths, China runs away with them. From [Investing News]( updated this year: - China - reserves: 44 million metric tons (MT). The country was also the world’s leading rare earths producer in 2022 by a long shot, putting out 210,000 MT. - Vietnam - reserves: 22 million MT. Vietnam is interested in building its clean energy capacity and is working to produce more rare earths for that reason. - Brazil and Russia - reserves: 21 million MT each. Brazil and Russia are tied for the third-largest rare earths reserves. Brazil was not a major producer of rare earths in 2022. Russia produced 2,600 MT of rare earths in 2022. - India - reserves: 6.9 million MT. India has nearly 35 percent of the world’s beach and sand mineral deposits, significant sources of rare earths. - Australia - reserves: 4.2 million MT. While Australia was the third largest rare earths-mining country in 2022 at 18,000 MT of production, it has the fifth largest reserves in the world. - United States - reserves: 2.3 million MT. Rare earths mining in the US now happens only at California’s Mountain Pass mine. Russia’s reserves outweigh America’s by a factor of nearly 10. Vanadium From an earlier Rude titled, “[The Most Important Metal You’ve Never Heard Of and Why It Matters]( Just America’s luck… The top vanadium-producing countries in the world are: - China: China is the largest vanadium producer, accounting for over 60% of global production. Most vanadium in China is produced as a byproduct of steel production. - Russia: Russia is the second-largest vanadium producer, accounting for around 16% of global production. The country produces vanadium from several mines, including the Kachkanar mine in the Ural Mountains. - South Africa: South Africa is the third, accounting for around 13% of global production. The country produces vanadium from the Bushveld Complex, a large igneous rock formation. - Brazil: Brazil is the fourth, accounting for around 5% of global production. The country produces vanadium from the Maracás Menchen Mine, located in Bahia. - India: India is the fifth, accounting for around 2% of global production. The country produces vanadium from several mines, including the Rampura Agucha Mine in Rajasthan. What a coincidence… If you rearrange the first initials of those countries, you get BRICS! You know, those guys who are frantically trying to de-dollarize. The US doesn’t produce much vanadium at all. According to the [US Geological Survey]( Canada accounts for 26% of U.S. vanadium imports. The next four are, unsurprisingly, China (14%), Brazil (10%), and South Africa (9%). Cobalt The lithium-ion batteries that power EVs require lithium, graphite, and cobalt, among other raw materials. Given that, let’s look at the top cobalt producers by country. - Democratic Republic of Congo - mine production: 130,000 MT. The Democratic Republic of Congo (DRC) is by far the world’s largest producer of cobalt, accounting for roughly 70 percent of global production. - Russia - mine production: 8,900 MT. While the country's cobalt reserves stand at 250,000 MT, Russia is still well behind the DRC in production. - Australia - mine production: 5,900 MT. The island nation may be third in cobalt production, but its cobalt reserves are the second largest in the world at 1,500,000 MT. - Canada - mine production: 3,900 MT. As with Australia's cobalt, Canadian cobalt comes mostly from large nickel and copper mines that produce cobalt as a by-product. - Philippines - mine production: 3,800 MT. The US has cobalt reserves in Missouri, Montana, Idaho, and Alaska. But it’s much less than Russia’s. Today’s Bonus Jed T. wrote to the Rude about even more critical resources. Read this: Hi Sean, Love your daily newsletter; it is a “must-read” for me each day. Today's column is excellent. There is another metal out there called Niobium, and yet another one called Scandium. Niobium strengthens steel, as Scandium strengthens aluminum. Niobium is produced in big quantities, mainly in Brazil. Scandium is not widely available. This brings us to southeast Nebraska and a company called NioCorp. NioCorp (Nasdaq: NB) is working to develop a mine in Nebraska that produces Niobium, Scandium, and Titanium. They are currently in the process of testing for other rare earths that are in demand. The company has excellent MGT and is working to secure financing for the mine. The journey is not without its setbacks, but each year they advance closer and closer to getting the mine built. They own much of the land (or it is secured with purchase options I believe . . . ) and they have the permits, and they also have the support of the State and local governments and communities. Needless to say, the US and worldwide demand for rare earths and specialty metals keeps increasing. This mine will produce these metals here in the USA. Thought you would be interested, and yes, I am a shareholder in NioCorp (I have held the stock for many, many years). I heard about your newsletter from my good friend, Jorge de Cubas, the crazy Cuban. We talk about your writings frequently. Take care. Jed T. Jed, thank you so much for sharing this. I joke with Byron King that I’m no geologist, just a paper finance guy. So this is gold dust to me. I will certainly look at that stock (and thanks for declaring you’re a shareholder!). As Byron might say, sometimes some stocks move you from this side of town to that side of town. This may be one of them. And tell my buddy Jorge I said hello! Wrap Up I hope you found this informative. Thanks again to William S. and Jed T. for writing in with essential, compelling questions and thoughts. These queries are important and demand to be answered to the best of our ability. Have a great day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( In Case You Missed It… Russia’s Resources [Sean Ring] SEAN RING Dear Reader, Happy Hump Day from a lovely Piedmont! I hope you enjoyed yesterday’s mailbag. There were so many interesting questions in it. I love when you write. Please continue to do so at feedback@rudeawakening.com. Today, I will answer one question from the mailbag - or rather half of it - as it’s big enough for one Rude and a critically important topic. Thanks to William S for asking! Without further ado, let’s get right into it. Baloney, Seanie! I just read your morning missive, “The Vacuum Tube in the Coal Mine.” At the end, you list 10 natural resources Russia has in abundance, but we do not in the U.S.: “Here are 10 natural resources that Russia has in abundance that are not as abundant in the United States: - Natural gas - Crude oil - Nickel - Palladium - Platinum - Diamonds - Timber - Rare earth elements - Vanadium - Cobalt” I call baloney on some of these, namely, natural gas, crude oil, and rare earth elements. We have natural gas in overflowing abundance. We still have lots of crude oil both within the contiguous US, offshore, and in and off the coast of Alaska. Similarly, we have large, known deposits of rare earth elements. We have timber in abundance. The problem is, like many things, federal and, in some instances, state regulations make it cost-prohibitive or outright prohibit our logging, energy, and mining industries from accessing them. I am not knowledgeable about the other items in your list, so will not comment. Perhaps you know if the situation is the same for those. William S William, never trust anyone blindly. Not even me. I will run through this list, one by one, because it’s that important. But I will add you’ve answered part of your question. The regulations on natural gas and oil are killing America’s capacity. Here we go: Natural Gas Here are the top 5 producers: - Russia: 48 trillion cubic meters (tcm). - Iran: 33.5 tcm. - Qatar: 24.7 tcm. Qatar is also the world's largest liquefied natural gas (LNG) exporter. - United States: 10.5 tcm. The development of shale gas resources, particularly in the Marcellus and Utica formations, has significantly contributed to the increase in U.S. reserves. - Saudi Arabia: 9.2 tcm. Russia has over 4x as much as the US. But the bigger problem for the US is that it doesn’t have enough ships (thanks to the dreaded Jones Act) to get the stuff around the coasts. From an earlier [Rude]( Not Enough Pipelines in the Northeast But it’s not entirely [New England’s] fault. Get this from the Yankee Institute: The main problem is that New England can’t get enough natural gas from the rest of the country. Demand for gas has climbed in recent years because it produces less carbon dioxide for each megawatt it generates, and in many instances, has been more economical than oil or coal. But resistance to natural gas infrastructure, specifically pipelines in New York, have left New England relying on oil for electricity and heat when the gas can’t flow fast enough. New York Governor Andrew Cuomo in 2016 used administrative maneuvering to block the proposed Constitution Pipeline, which would have brought gas from Pennsylvania into existing pipelines that supply New England. Several other gas projects were subsequently nixed or withdrawn because of obstacles created by New York state agencies. Cuomo ostensibly blocked the pipelines because of concerns about carbon dioxide emissions. But as today’s high use of oil and coal shows, constricting the flow of natural gas doesn’t entirely prevent emissions, and in fact, can push them higher. Cuomo’s crappy policies continue to haunt America. [Patent #11,219,620: The Most Valuable Patent In History?]( I believe this could over time become the single most valuable patent in history. [That’s because this patent is just some of the exciting work being done by a company which is developing treatments for one of the biggest and most common diseases in America…]( A disease which impacts 54 million people, or about 26% of the adult population in America. Whatever you do, do not let this opportunity pass you by. [Click here now for the details.]( [Click Here To Learn More]( Ships and Rail Shipping or railing LNG is much, much more expensive than pipelined gas. (Editor’s Note: This is why thinking Europe will pay for shipped US LNG in perpetuity is insanity.) And the Jones Act requires that all goods transported by water between U.S. ports be carried on ships constructed in the United States that fly the U.S. flag are owned by U.S. citizens and crewed by U.S. citizens and U.S. permanent residents. Here’s a scary stat: there’s only one Jones Act-compliant LNG ship being built at the moment, and it won’t be done until 2023. The rest of the world’s LNG fleet was built abroad. So not only does the US have much less natural gas than Russia, it can’t ship the stuff around the country. Crude Oil Here is a list of the top countries by proven [oil reserves as of 2023]( - Venezuela - 302 million barrels - Venezuela has the largest proven oil reserves, but much is heavy or extra-heavy crude oil. - Saudi Arabia - Saudi Arabia's reserves are primarily light and medium crude grades. - Iran - Canada - Canada's reserves are primarily in the form of oil sands, which are a type of heavy oil. - Iraq - Russia (106 million barrels) - Kuwait - United Arab Emirates - Libya - United States (47.1 billion barrels) The U.S. has a mix of light and heavy crude but has significant light oil production from shale formations. The US is indeed the world’s largest producer but doesn’t have the world’s largest reserves. But the bigger problem is that most of the US’s crude is light. Heavy crude is required for fuel oil, marine oil, asphalt, and lubricants. Nickel Here’s a list of countries with [significant nickel reserves]( according to the data up until 2021. Please note these reserves include both laterite and sulfide ore types: - Indonesia - Indonesia is one of the world's largest producers and exporters of nickel. As of 2020, the nickel reserves in Indonesia were estimated to be around 21 million metric tons. - Australia - approximately 19 million metric tons - Brazil - around 16 million metric tons - Russia - approximately 6.9 million metric tons - Cuba - 5.5 million metric tons - Philippines - 4.8 million metric tons The US doesn’t have significant nickel deposits at all. Without nickel, you can’t make stainless steel, some alloys, or batteries. Palladium Palladium, a precious metal primarily used in the automotive industry for catalytic converters, is mined in a few countries worldwide. The production of palladium often comes as a byproduct of mining for other metals, especially nickel and platinum. Here are the top countries in terms of [palladium production as of 2022](. Please note this one is production, not deposits: - Russia - 88 metric tons - Russia is the largest producer of palladium. The Norilsk Nickel company in Russia is the world's leading palladium producer. - South Africa - 80 metric tons - South Africa is the second-largest palladium producer. The Bushveld Igneous Complex in South Africa contains some of the richest ore deposits in the world, including significant quantities of palladium. - Canada - 15 mt - Canada is also a significant palladium producer, particularly from mines in the Sudbury Basin in Ontario and the Lac des Iles mine in western Ontario, among others. - United States - 12 mt - The U.S. contributes to global palladium production, specifically the Stillwater and East Boulder mines in Montana. - Zimbabwe - 11 mt - Zimbabwe also produces a significant amount of palladium, primarily from the Great Dyke region. Platinum Here are the top countries in terms of platinum production (again, not deposits) as of 2021: - South Africa - 130,000 kg in total - South Africa has the world's largest platinum reserves and is the largest producer, contributing to over 70% of the world's production. Most of the production comes from the Bushveld Igneous Complex, estimated to contain around 63,000 metric tons of platinum. - Russia - 22,000 kg - Russia is the second-largest producer of platinum, with Norilsk Nickel being the largest Russian producer. The company extracts platinum as a by-product of nickel and copper mining. - Zimbabwe - 15,000 kg - Zimbabwe is also a significant producer of platinum, mainly from the Great Dyke region, a geological feature rich in metals. - Canada - 7,400 kg In Canada, platinum is often produced as a by-product of nickel mining, particularly in the Sudbury region of Ontario. - United States - 3,600 kg - The United States produces some platinum, mainly from the Stillwater mine in Montana. Wrap Up We’re already running long on this Rude, so I’ll wrap it up here. Tomorrow, I’ll tackle 6 through 10 on our resource list. Have a wonderful day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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