North Korea plans to give China the right to mine a rare earth mine in Pyongyang in exchange for China's investment in solar energy in North Korea to ease the power shortage, according to an article published on its website on Thursday.
China is the world's leading producer of rare earths, but North Korea is believed to have huge untapped resources.
An article on the website of the China Rare Earth Industry Association pointed out that the construction of a 2.5-megawatt-a-day solar power station in an inland area such as Pyongyang is expected to cost about $2.5 billion. The association also said that China's return on investment is to obtain the mining right of a rare earth mine located in the North of Pyongyang province.
The source of the report is CBC metal network, an industry pricing and data provider. Radio Free Asia (RFA) released a very similar report on October 21.
"This is the best time for China to invest in North Korea," the CBC metals report quoted a North Korean official in Shenyang as saying.
The official said that the 70th anniversary of the establishment of diplomatic relations between China and North Korea would be "easier to negotiate with the Chinese authorities".
However, a source from China's rare earth industry said such an agreement was "wishful thinking" of North Korea, and he doubted how much interest China had in the project.
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