China revoked export quotas hit Reiner

China the world's major producers of export ban revoked decade in the international market set off no small vibration rare, ASX listed rare earths miner Carolina stock price fell sharply. Faced with the new changes, alternative suppliers operating prospects being tortured again.

ACB News "Macao and China Finance Online" report, after China set quotas on exports of rare earths, forcing an international scramble to find alternative sources of supply of customers. Now entered the production phase of the project is only in Australia overseas Carolina, United States molybdenum company (Molycorp) crude saltpeter tyndareus tapas rare earth ore project.

Rare earth mine industrial "gold", with excellent electromagnetic and other physical properties of light can be composed with other materials with different properties, a wide variety of new materials, widely used in the manufacture of defense, IT and transportation industry high-tech products.

According to rough statistics, China currently controls 90 percent of the global supply of rare earths, after 2010 the Chinese government slashed export quotas, US, EU and Japan have the World Trade Organization (WTO) protests, accusing China aims to lift restrictions on the export of rare earth product prices. Subsequently WTO that China change the quota system for the domestic availability of cheap raw material supply of rare earth products manufacturers to bring a competitive advantage in the market, and in the last judgment, China failed to give adequate reasons for quota adjustments. Then the Chinese government agreed to withdraw quotas.

December 31, the Chinese Ministry of Commerce issued the "2015 list of goods export license management" clearly Cancel rare earth export quotas. Chinese exports of rare earth ore still obtain relevant permits future, but exports will no longer be restricted. China Rare Earth Industry Association, a responsible person said, details about the rare earth industry, the regulatory system is still under development.

Carolina is one of Australia's current major new rare earth market forces, with more than a dozen mines in Western Australia, Malaysia and processing plants have been put into operation. In recent years, the rare earths miner pressure frequently affected by the loss of frustration, plant license application by the Malaysian environmental organizations strongly resisted, after barely put into troubled by technical problems, not the high operating costs, while still bear the gradual decline of the price of rare earth .

China canceled the export quota of rare earth brings the latest a heavy blow. After the Christmas and New Year holidays ASX trading in the first week, Rainer ASX share price fell even two days, the cumulative decline of nearly 14%, the latest price quoted at 6.2 points.

As early as 2011 peak price of rare earth, the stock was as high as 1 AUD Carolina. However, the current price has dropped rare for many manufacturers in terms of "unsustainable" level.

"Fortune Xiang Yi"

Running track rare earth prices "roller coaster" type of so many mining companies such as Carolina, as well as industry investors by surprise, but China revoked export quotas or overwhelmed as a market return to a stable signal. According to the Wall Street Journal quoted the Chinese Academy of International Trade and Economic Cooperation Ministry of Commerce Jinbo Song experts as saying that this quota system the most important factor is government wants to play a greater role in guiding the market.

Under the self-regulation of the market mechanism, rare earth prices will better reflect changes in supply and demand, the healthy development of rare earth industry or can be expected.

The past two years, the world's rare earth supply diversification began to accelerate, the capital of which is to play an active force. Ben previously reported, in Australia, China, East China Mineral Exploration and Development Bureau (ECE) affiliates Arafura Resources Limited (Arafura, ASX: ARU) rare earth project is expected to be commissioned within five years.

China Nonferrous Metal Construction Company (NFC) intends to join the Australian energy company Greenland Minerals (ASX: GGG) work together to build a highly integrated global rare earth supply chain.

Beijing Cong Lin Holdings ASX listed company Orion Metals (ASX: ORM) recently obtained a new license from the mine to the exploration of mineral resources, the Ministry of Queensland, Ramsay RE project is about to start. Its holdings of rare earth exploration, another developer Northern Mining Limited (Northern Minerals, ASX: NTU) 's Northern Territory Browns Range Heavy Rare Earth (HRE) project has also demonstrated a strong development prospects.


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