OTCPK:LYSCF - Post by User
Post by
Einherjaron Jan 29, 2009 1:23am
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Post# 15735974
Chinese Rare Earths Export Quota reduced for 2009
Chinese Rare Earths Export Quota reduced for 2009China accounts for about 95% of the global rare earths market. It isalmost a monopoly. Since 2003 the Chinese government has imposed quotason the export of rare earths in an effort to limit exports anddoubtlessly to control the price. Much like OPECs efforts with oil.
According to Lynas, the Chinese Ministry of Commerce:
"Has released 15,043 tonnes of approved Rare Earths export quota forthe first half of 2009. This is a reduction of 34% compared to thefirst six months' quota for last year. Historically the second trancheis of similar or lower quantity compared to the initial tranche.Therefore the total 2009 quota is expected to be less than 30,000tonnes as China continues to protect its mineral resource exports. Thisrepresents a 25% decrease in total quota tonnage compared to theannualised 2008 figure."
This is good news for non-Chinese rare earths companies and is afurther example of why I believe rare earths could be set for asurprisingly good year in 2009.
Chinese Rare Earths Export Quota reduced for 2009