SGIS Blog
Potential Rare Metals Supply Crisis May Lead to Worry in Defense Industry
The growing needs and potential decline of readily available rare earth materials may create a significant cause for worry among the US Defense Department. Rare earth materials, such as oxides, metals and alloys, are used for commercial products, green technologies and in particular, military systems such as night vision and guided bombs.
The Government Accountability Office published a report in April on rare earth materials in the Defense supply chain. The report confirmed that the availability of these rare earth materials is limited to a few sources overseas, particularly China. China mines 93 percent of the total world production of rare earth metals and consumes 80 percent of the supply. This stronghold creates a dominant position for the country that could affect worldwide supply and prices.
Last week, a draft proposal submitted for approval to China’s State Council claims mining rights for the 17 rare earth elements will be restricted to only a handful of Chinese state-controlled mining companies. This move would give the Chinese government almost complete control over both the destinations of export and a much greater say in regulating supply and prices. However, these increased restrictions could deepen international concerns that China is unfairly hoarding its reserves of rare earth metals and other key raw materials at a time of rising global demand. China claims that the restructuring of the rare earth mining industry is meant to conserve reserves and maintain prices after years of over-exploitation that have damaged the country’s environment. (Photo courtesy of seekingalpha.com)
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The SGIS Blog
Military Pay Raise of 1.9% in 2011 stirs up Mixed Feelings among Lawmakers, President
 At the beginning of May, we posted a link on our Facebook page letting fans know that lawmakers were poised to give service members a 1.9 percent extra boost in pay next year, despite objections from the Defense Department over the long-term cost of the raise. The House Armed Services personnel subcommittee announced plans for the pay raise next January, but this brought up some discussion as Defense officials had previously asked for a 1.4 percent raise based on anticipated private sector raises for 2011.
Rep. Susan Davis, D-Calif., said the extra money was needed to help close the ongoing gap between civilian paychecks and military wages. Lawmakers also said that the additional pay raise was needed to reward service members and their families for the sacrifices during nine years of war and because of the strain placed on the force.
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