Avalon/REE up on China's Cease ProductionDoes this mean North Americans will finally realize they need to scramble for REE/Lithium resources?China is intending to keep supplies to itself, obviously.
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China: cutbacks in rare earths production and tungsten, antimony and rare earths exploration
China's Ministry of Land and Resources says production quotas for rareearths, for which it is the dominant world supplier, will be reducedand new exploration licenses for rare earths, tungsten and antimonyhalted.
Posted: Friday , 08 May 2009
HONG KONG (Proactive Investors) -
China is to reduce production quotas of rare earths and will stopissuing exploring licenses for rare earths, tungsten and antimony until30 June 2010, the Ministry of Land and Resources said in an documentissued yesterday.
In an effort to boost prices, the quota for rare earths productionhas been reduced by 6 percent. However quotas for tungsten wereincreased 2.6 percent and antimony by 23 percent.
Many miners recently stopped operations when prices dropped sharply as a result of the global financial crisis.
China's has over half of the world's deposits of rare earths,tungsten and antimony and over 80 percent of production. Late-formerleader Deng Xiaoping once said: "The Middle East has oil, China hasrare earths".
Last week, China Non-Ferrous Metal Mining became the majorityshareholder in Australian rare earths miner Lynus Corp (LYC). While, inMarch, East China Exploration bought a 25 percent stake in Australia'sother big rare earths prodcuer, Arafura Resources (ARU).
Thursday Tianjin Benefo Tejing Electric Co. (SH:600468) added 3.29percent. The company has a mining subsidiary in Ganzhou, JiangxiProvince where China's largest tungsten deposit is located. HunanNonferrous Co. (HK:2626) climbed 0.64 percent. The company controls 40percent of world's tungsten deposits.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (SH:600111)advanced 1.16 percent. Its parent company has world's largest rareearths deposits. China Rare Earths Holdings (HK:0769) declined 2.63percent.
Chenzhou Mining Group Co. (SZ:002155), the world's second largest antimony producer, added 1.78 percent.
In Canada, shares in rare earth mineral explorer Avalon Rare Metals(TSX-V:AVL) climbed 1.5%, while North America's only tungsten producer,North American Tungsten (TSX-V:NTC) slipped 2%.
Published courtesy of Proactive Investors - www.proactiveinvestors.co.uk
Metatags: China rare earths, China's Ministry of Land and Resources, China Non-Ferrous Metal Mining, tungsten, antimony