Rare Earth elementsChina will cut rare earths export quotas yet again
China produces 97 percent of the world’s rare earth elements; over the last three years it has been steadily reducing the exports of these metals; the Chinese say the reason is the need for growing domestic demand; critics say that China’s goal is to undermine the high-tech sectors of Western countries’ economies; earlier this year China stopped shipping rare earths to Japan following a dispute between the two countries over a couple of small Pacific islands
China has said it will cut exports of rare earth minerals by 10 percent in 2011. World manufacturers are heavily reliant on China for these minerals, which are essential for making many electronic goods, such as TVs and PC monitors. They are also used in manufacturing wind turbines, hybrid cars, and military equipment.
China has 97 percent of the world’s known supply of the goods. The United States mined none last year. Rare earth minerals have been a thorny trade topic for some time, and China has previously promised not to cut supplies drastically.
Rare earths are a collection of seventeen chemical elements in the periodic table: scandium, yttrium, and some fifteen lanthanides.
The BBC reports that shares in two Australian companies, which are planning to mine rare earths, jumped more than 10 percent on the news.
Australia’s Lynas Corp , which owns the richest known deposit of rare earth outside China, rose 10.8 percent, while its rival Arafura rose 11.1 percent.
The United States last week said it was “very concerned about China’s export restraints on rare earth materials, antimony and tungsten” and could still file a case on that at the World Trade Organization.
In September, China blocked exports of rare earths to Japan after a territorial row but later resumed them.
China has been reducing export quotas of rare earths over the past several years to cope with growing demand at home. A Commerce Ministry spokesman has also said that China is cutting its supply side too, reining in exploration, production, and exports because of what it says are environmental concerns.
The country also plans to raise duties on some rare earths and set up a trade association of suppliers.
China usually issues a second batch of quotas during the year, and it is not known how the figures will change later in 2011.
Japanese manufacturer Sony said Beijing’s move was a hindrance to free trade — adding it would work to reduce its reliance on the minerals.
The firm said it was crucial to producing items including magnets, condensers, and abrasives for polishing glass on LCD screens.
What are rare earths?
- Despitetheir name, rare earths are not particularly rare
- The term refers to seventeen elements, most of which are fairly abundant in nature
- Rare earths are a collection of seventeen chemical elements in the periodic table: scandium, yttrium, and some fifteen lanthanides
- Some are as common as copper or zinc, while even the rarest occur in greater quantities than gold or platinum
- They are essential in the manufacture of many electronic goods
