Tight rare earth supplies here to stay, Baotou says
Source：China Daily Date：Sep.16,2011
A rare earth mine in Bayan Obo, Inner Mongolia autonomous region. China`s total rare earth export quota for this year is 30,184 tons, little changed from 30,258 tons last year. Wu Changqing / For China Daily World`s heavy reliance on China as leading source is not sustainable BEIJING - Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Holding Co, the nation`s biggest rare earths producer, said on Thursday that short supplies of these valuable minerals represent an "irreversible" trend, a comment that could spark market speculation of further price rises. China has no intention of remaining the world`s major supplier of rare earths and will gradually shift focus to domestic demand, Li Zhong, vice-president of the company was quoted by Xinhua News Agency as saying on Thursday at a conference in Beijing. The Inner Mongolia autonomous region-based company holds 1,719 metric tons of rare earth export quotas for 2011, making it one of the top exporters of the metals that are widely used in high-technology applications including iPhones and hybrid cars. The total export quota for this year is 30,184 tons, little changed from 30,258 tons last year. China, which supplies about 95 percent of the world`s total consumption, has been tightening production and exports since 2009 as it seeks to regulate the industry and crack down on illegal mining and exports. Top national officials in May announced higher taxes on rare earths and said that no new separation projects would be approved over the next five years. Industry experts said that the world`s heavy reliance on China for the metals since the 1990s could not be sustained, as high levels of mining activity had exacted an enormous environmental toll. "China should not be the world`s supply center for rare earths in the future. From the strategic point of view, it`s better to encourage the diversification of global supplies," said Chen Zhanheng, director of the academic department of the Chinese Society of Rare Earths. However, the country is under foreign pressure over tightening controls on the metals. European Union Trade Commissioner Karel De Gucht was quoted by Reuters as saying this week that the EU wanted higher quotas of rare earths from China and would seek more clarity from Beijing during economic meetings scheduled for October and December. The World Trade Organization (WTO) ruled in July that China`s export quotas and duties on some raw materials, including rare earths, were illegal and went against the nation`s commitments when it joined the organization in 2001. The ruling came after the WTO received complaints from the US, EU and Mexico. Rare earth resources could be depleted very rapidly without quota restrictions, said Chen. Thus, it was fair for China to limit overseas sales initially, while it sought to get the industry on a healthy track, Chen added. "It will benefit the world`s economy in the long run." Exports will continue to be cut because reserves have been depleted after years of over-production, said Liu Minda, an analyst at Huatai Securities Co. China`s restrictions on production have triggered a price surge, with some rare earths soaring more than sixfold so far this year. Prices are expected to stay high for the rest of the year, said Li.
CHINA MINING Congress and Expo 2010 attracted 4,176 registered delegates (including 1,229 abroad, and 2,947 domestic) from 57 countries and region as compared to 3,000 delegates last session. The number of delegates, exhibitors and visitors amounted to 4,500 as compared to 3,500 last session. There were an 53% increase in total exhibitors to 276 as compared to 180 last session , and an 51% increase in total standard booths to 635 as compared to 420 standard booths last session,. The exhibition area exceeded 10,000 square meters, increasing by 25% compared to the previous session. Mr. Li Keqiang, Vice Premier of the State Council, attended the opening ceremony and delivered an opening speech. First Vice President of Republic of Peru Luis Giampietri Rojas and Managing Director of World Bank Ngozi Okonjo-Iweala as well as mining ministers and vice ministers and ambassadors of eight countries were present at the congress. At the projects signing ceremony, 62 international cooperation projects were signed, amounting to RMB11.7 billion. Meanwhile, the congress attracted nearly 200 major media organizations as well as mining journalists from more than 30 countries in the world to be present for spot coverage. In terms of number of delegates and scale of exhibitors and booths, the CM2010 all topped the previous sessions, ranking the world’s premier mining congress and expo..
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