Rare crisis in Japan worried

WTO ruling Chinese rare earth export restrictions violated the trade agreement , but that does not mean that Japanese industry so uneasy "rare earth crisis " has been Cancelled . Alternative origin of the slow progress the development of rare earth , instead of practical technology also take time , rare earths may again be sanctions against Japan, the Chinese government as a tool .

China is beginning to strengthen after 2000 rare earth export restrictions . "If it is to protect the environment , China should take measures to limit domestic production , rather than limiting exports. " World Trade Organization (WTO) Dispute Settlement Committee in its report presented in late March ruled that China 's rare earth export restrictions policy in violation of the relevant trade agreements . Subsequently, China appealed his conviction was appealed . WTO is scheduled to make a final decision before the summer , is a high possibility of maintaining the initial impression .

HV ( hybrid ), EV ( electric vehicle ) , wind power, flat-panel TVs , smart phones, etc. , the production of these high-tech devices are inseparable from rare earths. In 2010, over 90% of total global production of Chinese rare earth export restrictions , so that Japanese industry is deeply disturbed that the incident is still fresh .

So , WTO rulings make Japanese industry uneasy "rare earth crisis" truly past it?

Rare earth prices may rise again

China is strengthening in 2000 after the start of rare earth export restrictions , although the reason is to protect resources and the environment , but actually puts it as a diplomatic tool.

2010 China suspended rare earth exports to Japan will be able to prove it. Due to the collision occurred which led to the Diaoyu Islands waters immediately Sino-Japanese relations , the Chinese government to stop exports to Japan of rare earth , to achieve a real sense of Japanese sanctions .

China's re- exports to Japan of rare earth , not only improve the tariffs, and significantly limit the export volume . As a result, the original rare earth prices soared to 10-25 times , so that Japanese companies for the purchase of user exhausted . Later rare earth prices will fall , has slipped to near 2010 levels before , the reason is that many Japanese companies once the bulk purchase of trends in prices , resulting in a large number of stocks .

There was a time it was also worried that stock prices will rise again after use rare earths up . And after the Chinese export restrictions on rare earth policy was halted WTO, so many people calm down, think of rare earth issue has been resolved .

However , a person familiar with the situation in China but then raised objections to this view : " China rare earth enterprises appeared intent to impose ' green tax ' is. If you do , in fact, no difference with the export restrictions . "

Green taxes will be added to the export of rare earths , Japan and other countries, while the use of rare earths in China , it will emit green taxes without government reserves. Although the tax depends on the level of environmental protection , but if China really implement such a policy , Japanese companies may again have to buy expensive rare earths.

In fact, the Chinese government has begun to increase rare earth reserves . Although the Chinese rare earth exports continued to decline after 2011 , but in 2013 the amount of ion adsorption ore mining and other major rare earth mine still reached 9.38 million tons, an increase of 23 % compared to 2012 , which is likely to expand reserves and China increased production.

Chinese government reorganization of the rare earth industry may also lead to higher prices . China intends to operate in the year 2014 limited rare earth enterprises in the aluminum and six large conglomerates , aims to prevent price competition by the elimination of small -scale enterprises .

Time needed to find a stable alternative

China's rare earth export restrictions by the impact of policies , Japanese companies deeply felt the risk of China 's rare earth under control , thus speeding up the process of diversification of alternative technologies to the development and procurement , but recently these measures gradually stopped. Because the current rare earth prices have been low and stable state , many companies began to think , "Rather than rush to make an early practical alternative technologies , it is better to focus on the elimination of the inventory" ( a magnet alloy manufacturers ) .

There are also some companies released a rare alternative technologies , such as Japan, Daido Steel is not used for the development of a rare earth magnet dysprosium . However , the cost and other aspects of the problem to be solved , so that these alternative technologies truly universal , estimated that it takes a long period of time.

More serious problem is that Japanese companies rely on China to get rid of the banner name in 2011 after have announced plans to develop new resources or expand sourcing , but failed to advance these projects as planned .

Toyota Toyota Tsusho is a major customer , and actively take measures to ensure that the rare earth interests of the company. The company said that " unfortunately , rare earth projects are not formally entered the production phase ." In support of the Japanese government, the company plans in India , Vietnam and Indonesia and other places for rare earth production . These projects scheduled to begin production in 2013 , but did not come to fruition .

Sumitomo situation is the same. The company and the state-owned nuclear companies established a joint venture in Kazakhstan , planned use of uranium ore residue recycling rare earth business. The project should begin full production in 2013 , but the company said, " technology is still in the validation phase , followed by things yet to be determined ."

American molybdenum mining company (Molycorp) have enjoyed plans to develop specifically for use in Japan of rare earth supply base - "Mountain Pass mine " ( California, USA ) and the highly anticipated , but " the project than originally planned postponed more than a year . "

There are arguments that the above rare earth development plans have reasons for the delay is that the profitability of these projects due to falling prices of rare earth becomes difficult , companies weakened enthusiasm for resource development . If this continues, still adhere to the terms of " the future will be rare as a strategic resource ," the tough stance of the Chinese government , may be rare in Japan as sanctions tool again .

In fact, Japan has been found in the waters near the South Bird Island "rare earth mud ." This mud is rich in rare earth dysprosium ( HV and EV is to improve motor performance indispensable RE ) and other heavy rare earth elements. Here also has another advantage , and that is on the ground when the environmental risks facing the mining of rare earth and other radioactive waste is almost non-existent.

However , more than 5000m deep-sea mining of rare earth from the depth of the need to address issues such as profitability . In order to make these rare earths can be used , but also for mining methods and other technical innovations, no small difficulty in this regard .

Rare earths are indispensable for Japan's manufacturing resources, but the situation is still not smooth procurement has not changed . In the Sino-Japanese relations can not see signs of improvement in the situation in Japan to prevent the arrival of the rare earth crisis once again , I am afraid that the government and business must work together , can not stop efforts to get rid of dependence on China conducted . This article compiled by the Nikkei technology online


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