China's rare earth industry, Present and Future

"The Middle East has oil, China has rare earth." This is the late Chinese leader Deng Xiaoping in 1992, said a word. However, rare earth precious than oil, but failed to China in exchange for considerable wealth. Touches in Japan, the United States and other countries with large rare earth resources, through the purchase of China's cheap rare earth, to establish a "hidden" strategic reserve. It is said that Japan's rare earth deposits in the sea for at least 20 years of its use.

When China began last disorderly exploitation of rare earth resources for reflection and decided to restrict exports of rare earths, the Europe and other countries did not. In the just-concluded China-Japan high-level economic dialogue, the Japanese had repeatedly asked China to expand exports of rare earths. The requirements of this illogical, the Chinese side to be a clear rebuff.

Japan's high-profile pressure on China

The so-called rare earths, referring to the chemical periodic table of lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), a total of 17 kinds of rare elements. RE can be widely used in hybrid cars, mobile phones, superconductors, and precision-guided weapons and other high-tech fields, and thus has a "21st Century gold" in the world.

Since 2007, China began to implement mandatory rare earth production planning, and begin to reduce exports of rare earths. This year, the Commerce Department issued a rare earth export quotas in 2009 plummeted by 40%. It is reported that China's rare earth export quotas next year will continue to shrink. Chinese rare earth export restriction measures, causing the United States and Europe and Japan, the strong reaction of the Western world. Last June, the U.S. and EU restrictions on Chinese exports of rare earth and other strategic materials appeal to the WTO. Recently, Japan has a high-profile add to pressure China ranks.

METI mid-August, claiming that since China announced in July this year to reduce exports of rare earth, a number of rare earth market prices have risen by 20%. Japanese media also agreed that China's rare earth sell limit orders, and the consequent price increases, many related to the Japanese enterprise "nervous." In the last week held in Beijing China-Japan high-level economic dialogue, Japan is persistently referred on several occasions to the Chinese Rare Earth and asked for China to relax restrictions on exports of rare earths, a sudden reduction in exports of rare earths are called "Impact of global production chain. "

For intensive pressure on the Japanese side, the Chinese government to be a rational and powerful response. Chinese Minister of Commerce Chen Deming in Japan economic high-level dialogue on the media explained that China is not only to limit exports of rare earths, but the mining, production, trade restrictions throughout the chain, such an approach is in line with WTO rules.

Chen also stressed that restrictions on the export of rare earth out both to promote economic development, but also to protect the environment as well as a combination of factors such as national security considerations. He admits, "Chinese know that such restrictions on Japanese companies and related industries, China's influence, but they had to do."

Some media reporter noted that the Chinese government the Japanese side put pressure on the earth's response on the issue, as well as the recent implementation of China's rare earth strategy, Chinese Internet users almost unanimously applauded. Some netizens message said: "The long overdue, and rare earth export restrictions related to the country's lifeline ...... ah!" There are friends, said: "The support of export restrictions, not always what we sell, what is synonymous with cheap goods!"

Japanese reap cheap Chinese Rare Earth

Analysts believe that China's rare earth export restrictions in Japan so sensitive, in fact, not difficult to understand, because the Japanese Nearly nine rare earth imports from China, is China's biggest beneficiary of cheap rare earths.

China rare earth industry insiders pointed out that Japan is currently the world's highest value-added use of rare earth to achieve national, rare earth high-tech sectors accounted for its more than 90% of total consumption. Through cheap imports from China rare earth materials, and then sell high-tech products processed in Japan can earn substantial economic interests. Because after processing rare earth prices are often comparable to gold and diamonds.

As we all know, China is the world's most resource-rich countries of rare earth reserves accounted for approximately one-third of the world, but the current production has accounted for 95% of the world. In the 1990s, China began large-scale mining and export of rare earth in low mining costs (without considering environmental costs), China's cheap rare earth domination of the world market in most countries, thus stopping the exploitation of rare earth.

In rare metal praseodymium, neodymium, for example, in southern China's rare earth production costs at about $ 30 per kilogram, while the United States had been archived mans Deng Pasi mine production costs up to $ 40 per kilogram. When the product prices remain at 35-40 U.S. dollars per kilogram, the United States is no need to own the exploitation of rare earth resources.

While China accounted for about 95% of rare earth in the world market, but failed to form the Chinese rare earth enterprises scale, the lack of a unified regulatory and disorderly competition and smuggling prevailed, resulting in China, "the first big country rare" status can not be transformed into the corresponding rare earth pricing. Between 1990 and 2005, China's export volume of rare although increased by nearly 10 times the average price has dropped to half of 1990. No wonder users generally lamented China's rare earth sell is precious, "earth" or "cabbage" price.

In China to sell cheap and unrestricted rare occasion, Japan and other countries the opportunity to buy and store a large number of rare earths. Chinese province of Inner Mongolia, a rare earth resources, industry insiders estimate that Japan's rare earth resources and even save enough for four or five decades already. In this regard, Chinese media pointed out that 30 years later, the world's largest rare earth origin --- Inner Mongolia Baotou Bayan Obo mine will likely not recoverable; while China has to rely on imports of rare earth development of the electronics industry in Japan, to Shique sitting adequate The rare earth resources. China to spend time perhaps hundreds of times higher than today's price, imported from abroad Rare!

Developed to create the illusion

United States and Europe complaining about Chinese rare earth export restrictions policy, one reason is that it would make a lot of industries are affected, and thus threaten their economic and "national security." For example, Japan's Mitsui & Co. Rare departments Yoichi Sato recently told the British "Times" interview, said that China's tightening of rare earth export industry in Japan is facing a "invisible tsunami."

But in fact, the above argument is completely untenable West. First, according to the U.S. energy policy analyst Mark Han Fuli July 28 report to Congress last year, China's rare earth reserves account for 36% of the world, production accounted for 97% of the world; United States, Russia, Australia's rare earth reserves accounted for world 13%, 19% and 3.6%, but its production was zero. It seems, is not without rare earth resources in other countries, but is "frozen" Bale.

Secondly, even if the Chinese rare earth export restrictions in recent years, but the world is still rare on the market oversupply. According to the Chinese industry's authoritative report, last year's global rare earth production was 129,400 tons, but the global rare earth consumption is only about 90,000 tons; expects 2010 output of 13 million metric tons, the oversupply situation is still difficult to change. Seen in this light, Japan and other countries on China's restrictions on exports of rare earths concerns mainly worried about the future of China further tightened after the export of rare earth, rare earth prices in the international market will correspondingly increase.

In addition, the Chinese environmental protection and other grounds to protect their strategic resource, is entirely reasonable. In the past twenty years of frenzied exploitation of rare earth resources, China has paid a high environmental cost. A typical example is Xingning City, Guangdong Province, in the town of Zou Tao Ning village was once a beautiful mountain village, but after many years in the mining of rare earth, rare earth mine was closed a few years ago when the local dust severe water pollution, abandoned farmland , the resident population dropped from 700 people to 100 people.

Develop high-tech is the key

Rare is a non-renewable resources, and related to the future development of high-tech and defense technology. In this sense, the rare-earth strategy is related to China's national security. Analysts pointed out that China can play the advantages of rare earth resources, the key lies in Chinese high-tech industries. Otherwise, even if China does not export rare earth resources in the country it is difficult to be fully utilized. This is the Chinese Society of Rare Earths Deputy Secretary-General Zhang Anwen said "the development of martial arts in the rare earth rare earth outside" the true meaning of this sentence.

And Japan will be used more than 90% of rare earth high-tech stark contrast, China's rare earth mainly used in traditional areas, used high-tech sectors is less than 50%; especially in the field of rare earth new materials, China has almost no independent intellectual property rights.

China Rare Earth Industry insiders also said that because China's exports of rare earth materials is only limited, therefore, more likely to foreign companies to set up factories in mainland China, simple processing of rare earth resources for export, which is actually disguise the Chinese rare earth export quota is exceeded. Thus, the final is still affected by the loss of China. Thus, the Chinese want to use and maintain their precious resources, the key is to develop advanced rare earth processing technology.


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