Ree prices expected to climb in ChinaBecause they`re actually talking about adopting responsible mining practices, which cost more...
Report: China may tighten environmental controls on rare earths
Sun Nov 7, 7:29 AM
The Associated PressBy The Associated Press
BEIJING,China - China may tighten environmental controls on rare earth mining,further raising the cost of metals vital to global high-tech industry,a state news agency said Sunday.
The report will add to international concern over the supply of theminerals needed to produce items such as cellphones, missiles and solarenergy panels. China now produces 97 per cent of the world's supply andhas recently been accused of blocking rare earth exports to Japan.
The official Xinhua news agency cited industry insiders as sayingChinese authorities are considering tightening pollution standards forrare earth miners, which will increase the cost of production and mayraise the price of rare earth exports.
Yang Wanxi, a government adviser involved in the drafting of newregulations on rare earths, was cited as saying the standards wereaimed at forcing producers to upgrade production techniques. Expertshave suggested that the government consider eliminating small producerswith annual production capacity of less than 7,250 tonnes of mixed rareearth products, Yang said.
Most of the industrialized world, including the United States, Japanand Europe, have largely abandoned their production of rare earths infavour of cheaper Chinese exports, but there are now mounting calls forcountries to work to diversify supply.
Japanese companies say that China has blocked exports of rare earthsto them since September, amid a dispute between the two governmentsover disputed islands in the East China Sea.
Chinese officials last week assured U.S. Secretary of State HillaryClinton that China would remain a reliable supplier. But Clinton hasmade clear that countries like Australia and the United States need toact to protect the supply.