NSU Resources, Inc. (OTCQB:NOST) is “a Canadian headquartered technology and resource Company with a primary focus on the development potential of rare earth metals in properties located in Canada.”
Rare earth metals are a series of 17 elements with special properties useful in many modern products including catalytic converters, cars – particularly hybrid and electric cars, medical devices, portable computer and handheld electronic devices, lasers, radar and satellites.
The Canadian Chamber of Commerce recently issued a report that estimated one geologic formation in Alberta alone (albeit a big one covering over 1,000 square miles) contained over a billion pounds of rare earth elements worth over $200 billion dollars. It urged Canadian companies to exploit these resources.
China has been producing more than 90 percent of these elements as its low prices forced competing companies outside of China to close. Lately is had begun reducing production and exports while raising duties on some of these elements. And now recently China announced that it had begun creating strategic reserves which might further reduce amounts of rare earth elements available to manufacturers worldwide.
As a result, rare earth element companies as a group are viewed as strategic opportunities by many investors.
NSU Resources has two projects under exploration and development in Nova Scotia. Reportedly these projects are close to major infrastructure including highways, railways and ports.
But developing these properties will take time and money, assuming they are economically viable.
The key to NSU Resources’ short-term and intermediate term success may lie in claims to have developed a proprietary methodology to extract rare earth elements, and its internal team is working with university scientists to find ways to further reduce extraction costs. The company plans to offer their services and/or license their technology to other mining companies. If this strategy is successful, NSU Resources could possibly prosper without having to develop its own mining operations.