MooPig's Tech Coroner :: "China's Rare Earths"

Retrieved by Pat Darnell | June 20, 2012 | Bryan TX

[Picture LINK] China controls 95% of the global rare earths market, with 45% of the global supply coming from China’s Baiyun Obo mine in Inner Mongolia. In recent years, the Chinese government has shuttered a number of other rare earth mining operations and imposed a range of export restrictions on rare earths, with the aim of ensuring domestic supply is sufficient to meet expected domestic demand (or for monopolistic control- you decide).

China warns its rare earth reserves are declining:
"After more than 50 years of excessive mining, China's rare earth reserves have kept declining and the years of guaranteed rare earth supply have been reducing," China's cabinet said in the paper on the rare earth industry published by the official Xinhua news agency.

EXCERPT | " ... the United States, the European Union and Japan jointly filed a case in March at the World Trade Organization that challenged China’s restrictions on rare earth exports, which were imposed in 2006 and have been repeatedly tightened since then. The W.T.O. case argues that the export quotas and tariffs violate free trade rules by putting pressure on companies to move their factories to China if they want to tap China’s vast supply of rare earths..."

" ... We're willing to cooperate with the parties involved to solve the dispute as soon as possible. At the same time, we will actively use WTO rules to defend China's legitimate rights and interests” (KEITH BRADSHER. Published: June 20, 2012) ... "

Gao Yunhu  Rare Earth Office
What are 'rare earths' used for?
The term rare earth refers to a group of 17 elements that are used to make a range of hi-tech gadgets.

These elements are used in products ranging from MP3 players to mobile phones, flatscreen TVs and hybrid batteries.

With those products becoming increasingly popular, the demand for rare earths has been rising.

There are quite a few production sites being developed at the moment, for example, in Australia, Canada, South Africa and Greenland. Unfortunately, most of them will not be able to ramp up output until 3-4 years from now, and significant environmental, technological and financing concerns may yet keep production costs high and supply outside China uncertain. According to Roskill, this new supply will become available just in time, as by 2012 China’s own elevated demand due to the growth in high-tech industries will have outstripped local supply. (January 19th, 2010)

_________________Reference
http://www.bbc.co.uk/news/business-18516461
http://slopeofhope.com/2010/10/rare-earth-a-long-term-investment.html
http://www.nytimes.com/2012/06/21/business/global/china-vows-tighter-controls-over-rare-earth-mining.html
http://indiumsamplesblog.com/2010/01/19/rare-earths-in-china-cornering-the-market-or-a-victim-of-its-own-success/