The Saskatoon company working to become the world's first mine-to-market operator in rare earth minerals, outside of China, has had a positive week on word China plans to cut its exports of the product by 30 per cent in 2011.

Great Western Minerals Group Ltd. (GWMG) has been inundated with enquiries about when the rare earths it's set to start mining in the coming years will be available for purchase. China produces about 97 per cent of the world's rare earths.

The local firm has also seen its share price on the Toronto Stock Exchange rise to nearly triple its 52-week low of 15 cents. Throughout the week, between two and eight million of its shares traded on a daily basis, up from a recent average of just over a million units.

"(China's news) is affecting the companies outside of China that have the potential of getting into production in the next short while and we're one of those few that are capable of doing that," said company president and CEO Jim Engdahl. "So the amount of enquiries we are getting from end-users and the interest from financiers has been unbelievable, to say the least."

GWMG has signed a deal to acquire 100 per cent of the rare earth minerals set to be mined at the Steenkampskraal project in South Africa. Great Western, which owns more than 20 per cent of the company working on the project, Rare Earth Extraction Co. (Rareco), expects production to begin at the high-grade site in 2013.

The company's most advanced project in Saskatchewan, Hoidas Lake, is expected to go into production in 2015. GWMG also holds the rights to a number of other rare earth projects, including a second site in Saskatchewan and one in New Brunswick.

Rare earths, which are elements found in the lanthanide series of the periodic table, are key components in products ranging from everyday items such as TVs and cellphones to hybrid vehicles and military applications.

"Interest is coming from all around the globe, it's not just localized, so it says the world is starting to understand and wake up," Engdahl said.

Some of that interest, Engdahl said, is coming from manufacturers of wind-powered turbines who say they plan to use rare earth magnet engines because they're more efficient than other options.

In 2010, China is expected to export about 30,000 tonnes of the 130,000 tonnes of rare earths it is set to produce. With the export figure set to drop by 30 per cent next year, end-users are looking for options, the CEO said.

"Where that magnet material is all going to come from over the next five to 10 years is going to be pretty significant and pretty hard to determine, but it bodes well for companies like ours," he said, adding GWMG also operates processing and manufacturing facilities for the elements.

The company's current focus is on getting the Steenkampskraal project to production, recently raising $35 million through a short-form prospectus offering and earmarking the majority of the funds for the South African site. Engdahl said GWMG is poised to be a leader in the rare earths sector once the project is producing.

"We have every confidence that this $35 million is a major, major vote of confidence from the market and will allow us to accomplish our goals and be the first fully integrated mine-to-market operator outside of China," he said.

The company's shares on the TSX ended the week at 42 cents apiece, a one cent, or 2.33 per cent, drop from Thursday.

ckyle@thestarphoenix.com