Beijing’s plans to centralise control of mining assets and restrict overseas sales souring ties with clients
Bloomberg in Perth 18 June 2011
Prices of some rare earths, used in hybrid cars and laptops, have more than doubled in the past two weeks as China seeks to tighten control of mining, production and exports, Industrial Minerals said.
Dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about US$1,470 a kilogram from about US$700-US$740 at the start of the month, the website said.
“Prices of heavy rare earths have surged since the start of the month as the Chinese government announced further plans to centralise control over the country’s mining assets,” the London-based website’s editor, Mark Watts, said on Thursday.
China, supplier of 95 per cent of global rare earths, has been curbing domestic output growth and exports of the metals, sending prices soaring and souring ties with key users including the United States and Japan. Beijing wants to set aside some deposits, with mining not allowed without central government approval, the Ministry of Land and Resources said on Thursday.
Standards for exporters will be raised and new project expansions will not be approved in an effort to stop overcapacity, illegal mining and sales, the government said last month. It would raise resource taxes on mined rare earths by a “big margin” to increase costs and boost prices, the State Council said.
The land ministry in February prohibited non-government entities from exploring or mining for rare earths in 11 zones near the southern city of Ganzhou in Jiangxi province. Such restrictions may apply to other mining areas, and the ministry will select part of these areas as its strategic reserves, Wang Min, a deputy minister, said at a meeting in Beijing.
“Heavy rare earths, which are largely mined in southern Jiangxi province, have been subject to tighter environmental controls and a government crackdown on historically widespread illegal mining,” Watts said.
Europium oxide, used for its phosphorescent properties found in plasma televisions and energy-saving light bulbs, has risen to as much as US$3,400 a kilogram from about US$1,300, Industrial Minerals said.
A group of 17 elements known as rare earths is used in wind turbines, hybrid cars and defence applications such as guided missiles.
The Baotou region of Inner Mongolia produces so-called light rare earths such as lanthanum, cerium and samarium. Heavy rare-earth production, concentrated in the south of the country such as Ganzhou, includes the elements dysprosium, gadolinium and terbium.
A table on the website of Lynas Corp shows the composite price of eight rare earths found at its Mount Weld project in Western Australia has surged to US$203.60 a kilogram on June 13, from US$92.84 on March 31 and US$11.59 in 2007.
“Demand for rare-earth elements is increasing in applications that are less esoteric than say, 20 years ago,” Watts said. “China, which is the world’s main commercially developed rare-earth elements source of supply, is reducing exports and increasing its consumption.”
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Tighter controls double price of some rare earths
Beijing’s plans to centralise control of mining assets and restrict overseas sales souring ties with clients
Bloomberg in Perth
18 June 2011
Prices of some rare earths, used in hybrid cars and laptops, have more than doubled in the past two weeks as China seeks to tighten control of mining, production and exports, Industrial Minerals said.
Dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about US$1,470 a kilogram from about US$700-US$740 at the start of the month, the website said.
“Prices of heavy rare earths have surged since the start of the month as the Chinese government announced further plans to centralise control over the country’s mining assets,” the London-based website’s editor, Mark Watts, said on Thursday.
China, supplier of 95 per cent of global rare earths, has been curbing domestic output growth and exports of the metals, sending prices soaring and souring ties with key users including the United States and Japan. Beijing wants to set aside some deposits, with mining not allowed without central government approval, the Ministry of Land and Resources said on Thursday.
Standards for exporters will be raised and new project expansions will not be approved in an effort to stop overcapacity, illegal mining and sales, the government said last month. It would raise resource taxes on mined rare earths by a “big margin” to increase costs and boost prices, the State Council said.
The land ministry in February prohibited non-government entities from exploring or mining for rare earths in 11 zones near the southern city of Ganzhou in Jiangxi province. Such restrictions may apply to other mining areas, and the ministry will select part of these areas as its strategic reserves, Wang Min, a deputy minister, said at a meeting in Beijing.
“Heavy rare earths, which are largely mined in southern Jiangxi province, have been subject to tighter environmental controls and a government crackdown on historically widespread illegal mining,” Watts said.
Europium oxide, used for its phosphorescent properties found in plasma televisions and energy-saving light bulbs, has risen to as much as US$3,400 a kilogram from about US$1,300, Industrial Minerals said.
A group of 17 elements known as rare earths is used in wind turbines, hybrid cars and defence applications such as guided missiles.
The Baotou region of Inner Mongolia produces so-called light rare earths such as lanthanum, cerium and samarium. Heavy rare-earth production, concentrated in the south of the country such as Ganzhou, includes the elements dysprosium, gadolinium and terbium.
A table on the website of Lynas Corp shows the composite price of eight rare earths found at its Mount Weld project in Western Australia has surged to US$203.60 a kilogram on June 13, from US$92.84 on March 31 and US$11.59 in 2007.
“Demand for rare-earth elements is increasing in applications that are less esoteric than say, 20 years ago,” Watts said. “China, which is the world’s main commercially developed rare-earth elements source of supply, is reducing exports and increasing its consumption.”
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