To: File 

From: Elizabeth Kohl, DOE GC-71 

Date: June 25, 2009 

Re: Ex parte discussion on rare earth phosphors 

On April 28, 2009, Mahima Gupta and Robert Carmichael of Navigant Consulting spoke via 

phone with James Hedrick of the US Geological Survey, a rare earth materials expert. Ms. 

Gupta and Mr. Carmichael asked Mr. Hedrick about the supply of rare earth phosphors as it 

relates to the final rule for general service fluorescent and incandescent reflector lamps. 

Mr. Hedrick emphasized the world’s dependence on China for rare earth resources, including 

phosphors. He noted most terbium (Tb) and europium (Eu) comes from the Bayanoba mine in 

northern China and most yttrium (Y) comes from ion absorption clays in southern China. The 

areas in southern China are quite polluted. He said Mountain Pass, Ca, the site of a Molycorp 

mine that operated for decades before closing in the ‘90s, is currently processing stocks of rare 

earths but not yet mining again, as a consequence of the recent increase in prices and Chinese 

trade policies linked to the resource. The site could be a great resource for Eu, but getting the 

environmental community in California to buy in to a mining project could be difficult. 

However, when rare earths are a multiproduct or byproduct, which is the case here in 

conjunction with iron ore, there is a better chance of getting projects online, at least in terms of 

financing. 

Mr. Hedrick said it is very difficult to estimate how much of the rare earths reserves (in the 

world, and particularly in China), are composed of Tb, Eu, and Y, and even more difficult to 

estimate how much could be yielded for lamp use. There are simply too many variables at all 

levels: concentrating practices, waste levels, levels of use in mixes for other processes, 

impurities, etc. Looking at reported capacity is not much more illuminating because the 

production estimates for mines are closely held, sometimes embellished or completely 

unreported. 

Mr. Hedrick said most processors use a solvent extraction, which has large upfront costs and 

takes a year or longer to produce anything and even longer to get to higher purities but is a 

continuous, closed-loop system that minimizes the loss of the rare earth phosphors sought and 

can have smaller environmental impacts than other systems. Essentially, the process is 

completed in liquid containers and there are no smoke stacks, etc. 

Mr. Hedrick said probably the largest risk to supply is Chinese policy, rather than demand. 

They’ve put tariffs on the product and export quotas already. If they suddenly decide to put stop 

exporting the resource--and they have a growing need for the material in their own country, not 

to mention a desire to use it in manufacturing in China--then the world will have to pay whatever 

China asks. He said China and Japan have been active in going around the world and buying up 

resources, while the U.S. hasn’t. He said all rare earths are serious issues, not just phosphors. 

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Mr. Hedrick said there are many mines/prospective projects around the world, but most of the 

time something holds them up, like environmental permits, financing, etc. He mentioned a 

developing site in Pearidge, MO, which is trying to get more funding, and said they have heavy 

rare earths there. 

Mr. Hedrick indicated that the recent spike in phosphor costs is directly related to spike in energy 

prices, China policies, and demand increases. In addition, there are more than 400 applications 

for rare earths. Rare earth phosphors, as opposed to rare earths in general, have fewer 

applications in that there are fewer of them. 

End of conversation. 

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