Wednesday, April 27, 2011

GTSO: New Chinese Rare Earth Production Quotas Could Lead to Shortages

China’s issuance of new mandatory production quotas for rare earth ore this week adds credence to the claim by Green Technology Solutions Inc. (OTCQB:GTSO) and other experts that the world’s top producer of rare elements can no longer keep pace with global demand for the critical materials.

The Xinhua News Agency reported Monday that China’s Ministry of Industry and Information Technology (MIIT) announced new mandatory production quotas for several rare metals conceived as part of the Communist government’s plans to implement new protective mining policies. The new annual production quota for rare earth ore is set at 184,200 tons: 93,800 tons of rare earth oxide and 90,400 tons of rare earth oxide smelting. The new quotas bear little increase over last year’s totals despite soaring prices and demand for rare earths worldwide. The ministry also reiterated that China will not grant any new licenses for prospecting and mining rare earth ores before June 30, 2012.

The new production quota is but the latest in a series of moves by China in recent months to limit its rare earth exports. Currently, China accounts for more than 95 percent of global rare earth production. Environmental concerns and shifting economic strategy, however, led the emerging Asian superpower to cut its rare element production by 35 percent in the first half of 2011. This cutback sent rare earths prices skyrocketing and exposed the U.S.’s dependence on China for its rare earth supply.

Rare earths are critical components in the manufacture of high-tech green energy technology, including photovoltaic solar panels, wind turbine generators and electric car batteries. The rare metals are also essential to the production of advanced smart weapons and defense systems. Due to the elements’ importance in the race to create the energy infrastructure and weapons systems of the future, many U.S. lawmakers support the efforts of GTSO and others to develop new sources of rare earths outside of China. Earlier this month, Reps. Hank Johnson (D-Ga.) and Edward J. Markey (D-Mass.) introduced a bill that would direct the U.S. Geological Survey to conduct a three-year international assessment of the availability and production of rare earth elements. The Resource Assessment of Rare Earths (RARE) Act would analyze known mineral reserves as well as investigate potential undiscovered deposits outside China. Another bill, the Rare Earths Supply-Chain Technology and Resources Transformation Act of 2011 (RESTART Act), introduced by Rep. Mike Coffman (R-CO) seeks to restore domestic production of rare earth metals.

GTSO is working diligently to help eliminate the possibility of worldwide rare earth supply shortages by developing new rare earth mines in the Central Asian nation of Mongolia. The company is currently in the process of securing the mining rights to four mineral-rich properties inside the former Soviet state. In February, the company formed a joint venture with Rare Earth Exporters of Mongolia (REE) to develop new sources of rare earth elements outside of China. After the joint venture’s agents signed letters of intent to develop the four mining sites in Mongolia, GTSO announced plans to acquire REE as a wholly owned subsidiary, potentially positioning itself as the sole rights holder to the new properties.

By developing new sources of rare earths inside Mongolia, China’s neighbor to the north, GTSO aims to help ensure an abundant and affordable stream of the critical materials to the U.S. and its allies. For more information on GTSO’s plans to mine and transport Mongolian rare earth ore, please visit

Green Technology Solutions commercializes clean and renewable mining technology and products in a sector that includes MV Rare Earth/Strategic Metals (NYSEArca:REMX), Ivanhoe Mines Ltd. (NYSE: IVN), Freeport-McMoRan Copper & Gold (NYSE: FCX) and Neo Material Technologies Inc. (Toronto: NEM.TO).

About Green Technology Solutions, Inc.

Green Technology Solutions, Inc. (GTSO) is an OTCQB publicly traded company. OTCQB is the middle tier of the OTC market. OTCQB companies report to the SEC or a U.S. banking regulator, making it easy for investors to identify companies that are current in their reporting obligations. GTSO acquires, develops and implements the newest clean mining technology to enable our partner clients to expand operations throughout the world. Environmental restrictions represent the largest restriction to mining industry growth and operations. GTSO focuses on overcoming these environmental restrictions with brilliant cutting-edge clean mining technology.

For more information, please visit

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

Green Technology Solutions, Inc.John Shearer, 408-432-7285President and CEO


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