Rare earths not a bargaining tool, says China
China said on Thursday that it will not use exports of rare earths -- exotic minerals required by high-tech industry -- as a diplomatic “bargaining tool” while Washington pressed Beijing to clarify its policy following its de facto ban on supplies to Japan.
China accounts for most rare earths production and global manufacturers that need them to produce mobile phones and other goods were alarmed when Beijing blocked shipments to Japan last month amid a squabble over disputed islands.
China has about 30 percent of rare earths deposits but accounts for about 97 percent of production. The United States, Canada and Australia have rare earths but stopped mining them in the 1990s as lower-cost Chinese supplies became available.
Rare earths are both “commercially and strategically” essential. “The entire world has to seek additional supplies in order to protect the important production needs that these materials serve,” she said.
Japan is expected to need 32,000 tons of rare earths next year and could face a shortfall of 10,000 tons, assuming the same quota is allowed by China and additional shipments come from outside China, a spokesman for rare earth importer Sojitz Corp. said this month.
China’s Commerce Ministry has said it will limit rare earths exports to protect the environment but denied a report shipments will be cut by up to 30 percent next year. This year’s export quota is 24,280 tons, down 30 percent from 2009.
Mr Zhu insisted a reduction in exports was in line with China’s free-trade commitments under the World Trade Organization. “China has exercised orderly management over the exploitation, production and export of rare earths. This is in line with relevant regulations of the World Trade Organization,” he said. “Our production, use and export of rare earths are based on our considerations for economic development and environmental protection.
The European Union and the US said on Tuesday that they were pressing for solutions to concerns that China may be exploiting its stranglehold on rare earth metals, crucial in the making of everything from portable phones to wind turbines.
Officials and industry executives in Berlin and Washington warned of severe repercussions from a scarcity of the minerals with magnetic, luminescent and other properties which go into products such as hybrid cars, solar panels and windmills.
The near monopoly China has in producing 97% of the world's supply of rare earths has been well known among industrial users for years, but came under the international spotlight after reports that Beijing halted shipments to Japan over a territorial dispute with Tokyo last month
The use of rare earth elements in modern technology has increased dramatically over the past years.
Rare earth elements are now incorporated into many technological devices, including superconductors, samarium-cobalt and neodymium-iron-boron high-flux rare-earth magnets, electronic polishers, refining catalysts and hybrid car components (primarily batteries and magnets).[7] Rare earth ions are used as the active ions in luminescent materials used in optoelectronics applications, most notably the Nd:YAG laser. Erbium-doped fiber amplifiers are significant devices in optical-fiber communication systems. Phosphors with rare earth dopants are also widely used in cathode ray tube technology such as television sets. The earliest color television CRTs had a poor-quality red; europium as a phosphor dopant made good red phosphors possible. Yttrium iron garnet (YIG) spheres have been useful as tunable microwave resonators. Rare earth oxides are mixed with tungsten to improve its high temperature properties for welding, replacing thorium, which was mildly hazardous to work with. Many defense-related products also use rare earth elements as enhancers. For instance, night vision goggles, rangefinders, the SPY-1 radar used in some Aegis equipped warships, and the propulsion system of Arleigh Burke class destroyers all use rare earth elements in critical capacities.[8]
India aims to restart production of rare earths late next year for the first time since 2004, a top government official said on Wednesday.
The Indian government is spending 1.4 billion rupees ($32 million) on a 5,000 metric ton capacity plant in Orissa, amid global concerns China may be taking advantage of its dominance of resources to squeeze export supply.
R.N. Patra, chairman and managing director of state-run Indian Rare Earths Limited, told Reuters his firm has environmental clearance to produce the hi-tech minerals at a plant under construction in eastern state Orissa.
"India had stopped producing rare earths in 2004 due to lack of market competitiveness, but now we have improved in-house technology to be more competitive," Patra told Reuters.
"Going by our domestic demand there should be enough for exports," he said.
A major consuming market is Japan, where Indian Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan agreed this week to cooperate on minerals and metals.
The near-monopoly China has in producing 97 percent of the world's supply of rare earths has long been known among industrial users, but it came under the international spotlight after reports Beijing halted shipments to Japan over a territorial dispute with Tokyo last month.
China also rocked the hi-tech industry and boosted metals prices in July when it announced it would reduce export quotas for rare earth minerals by 72 percent for the second half of 2010, extending a trend of cutting rare earth exports since 2008.
India and Japan are also trying to agree a civilian nuclear deal which will allow the use of Japanese technology and investment in developing India's nuclear power sector.
"Demand for rare earths is mostly in developed countries such as the United States, Japan, Europe and Canada. There is great demand in Canada," Patra said.
"Indian domestic demand was about 200 (metric) tons a year in 2004. That may have gone up somewhat but we still think we will have a lot to export," he said.
Rare earths can be used for both civilian and military purposes, including in nuclear applications.
Beijing has denied any plans to choke off shipments of the minerals. Chinese state media have criticized foreigners for making "unreasonable" demands on resources China needs for its own industrial development.
The European Union and the US said on Tuesday that they were pressing for solutions to concerns that China may be exploiting its stranglehold on rare earth metals, crucial in the making of everything from portable phones to wind turbines.
Officials and industry executives in Berlin and Washington warned of severe repercussions from a scarcity of the minerals with magnetic, luminescent and other properties which go into products such as hybrid cars, solar panels and windmills.
The near monopoly China has in producing 97% of the world's supply of rare earths has been well known among industrial users for years, but came under the international spotlight after reports that Beijing halted shipments to Japan over a territorial dispute with Tokyo last month
The use of rare earth elements in modern technology has increased dramatically over the past years.
Rare earth elements are now incorporated into many technological devices, including superconductors, samarium-cobalt and neodymium-iron-boron high-flux rare-earth magnets, electronic polishers, refining catalysts and hybrid car components (primarily batteries and magnets).[7] Rare earth ions are used as the active ions in luminescent materials used in optoelectronics applications, most notably the Nd:YAG laser. Erbium-doped fiber amplifiers are significant devices in optical-fiber communication systems. Phosphors with rare earth dopants are also widely used in cathode ray tube technology such as television sets. The earliest color television CRTs had a poor-quality red; europium as a phosphor dopant made good red phosphors possible. Yttrium iron garnet (YIG) spheres have been useful as tunable microwave resonators. Rare earth oxides are mixed with tungsten to improve its high temperature properties for welding, replacing thorium, which was mildly hazardous to work with. Many defense-related products also use rare earth elements as enhancers. For instance, night vision goggles, rangefinders, the SPY-1 radar used in some Aegis equipped warships, and the propulsion system of Arleigh Burke class destroyers all use rare earth elements in critical capacities.[8]
India aims to restart production of rare earths late next year for the first time since 2004, a top government official said on Wednesday.
The Indian government is spending 1.4 billion rupees ($32 million) on a 5,000 metric ton capacity plant in Orissa, amid global concerns China may be taking advantage of its dominance of resources to squeeze export supply.
R.N. Patra, chairman and managing director of state-run Indian Rare Earths Limited, told Reuters his firm has environmental clearance to produce the hi-tech minerals at a plant under construction in eastern state Orissa.
"India had stopped producing rare earths in 2004 due to lack of market competitiveness, but now we have improved in-house technology to be more competitive," Patra told Reuters.
"Going by our domestic demand there should be enough for exports," he said.
A major consuming market is Japan, where Indian Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan agreed this week to cooperate on minerals and metals.
The near-monopoly China has in producing 97 percent of the world's supply of rare earths has long been known among industrial users, but it came under the international spotlight after reports Beijing halted shipments to Japan over a territorial dispute with Tokyo last month.
China also rocked the hi-tech industry and boosted metals prices in July when it announced it would reduce export quotas for rare earth minerals by 72 percent for the second half of 2010, extending a trend of cutting rare earth exports since 2008.
India and Japan are also trying to agree a civilian nuclear deal which will allow the use of Japanese technology and investment in developing India's nuclear power sector.
"Demand for rare earths is mostly in developed countries such as the United States, Japan, Europe and Canada. There is great demand in Canada," Patra said.
"Indian domestic demand was about 200 (metric) tons a year in 2004. That may have gone up somewhat but we still think we will have a lot to export," he said.
Rare earths can be used for both civilian and military purposes, including in nuclear applications.
Beijing has denied any plans to choke off shipments of the minerals. Chinese state media have criticized foreigners for making "unreasonable" demands on resources China needs for its own industrial development.
No comments:
Post a Comment