« | »

China Nationalizes 11 Rare Earth Mines

From the International Business Times:

China nationalizes 11 rare earth mines, prices to go up in global market

By IBTimes Staff Reporter | January 21, 2011

The Ministry of Land and Resources of China Wednesday brought 11 rare earth mines under state control, in order to improve the protection, utilization of the country’s strategic resources and drive up prices of the element in global markets.

These measures came after years of planning. All of the 11 areas for rare earth mining are located in Ganzhou, Jiangxi Province in China’s southeast. The two iron areas are in Sichuan Province in China’s southwest, a report in People’s Daily Online said.

Under the new policy, only companies authorized by the central government can conduct surveying and exploitation in those areas.

If this were our country, only foreign countries would be allowed to conduct such surveying and exploitation.

"The new policy reflects the great importance attached to strategic resources by the government with the intention of using the resources in a more efficient way, "Lei Xiping, secretary-general of the Metallurgical Mines Association of China told media outlets.

That doesn’t sound very friendly.

China mines about 90 percent of the world’s rare earth minerals – which is a collection of seventeen chemical elements and is used to various technological devices, cellular phones, high performance batteries, flat screen televisions, green energy technology, and are critical to the future of hybrid and electric cars, high-tech military applications and superconductors and fiber-optic communication systems.

Something tells us the price of electric car batteries just doubled. Which means the Obama administration will have to double their subsidies. Which means that much more money to China.

World demand for rare earths in 2010 was about 127,000 tonnes [125,000 tons], a figure expected to reach 188,000 tonnes by 2015 as clean technology usage increases.

Earlier, China’s Ministry of Commerce issued the first batch of 2011 rare earth export quotas and allotted 14,446 tonnes of quotas to 31 companies, compared to the 16,304 tonnes allocated 22 companies in the first batch a year ago.

China suspended shipments of the mineral to EU and US in October, media reports stated. The suspension came after there were indications that the U.S. would investigate if China was violating World Trade Organization rules by subsidizing clean energy exports and limiting clean energy imports.

Expect more and more such blackmail in the years ahead. But why should we worry?

By the way, the New York Times article on this development made it sound like these Chinese government is clamping down on these rare earth mines because criminals are doing illegal strip mining there, which is polluting Mother Earth.

Proving once again that there are none so blind as those in our news media who will not see.

This article was posted by Steve on Sunday, January 23rd, 2011. Comments are currently closed.

2 Responses to “China Nationalizes 11 Rare Earth Mines”

  1. River0 says:

    There’s an old saying about this, and we’ll have to get used to being on the wrong side of it: “When you’ve got ’em by the ba**s, their hearts and minds will follow.”

    This is what comes from following hysterical environmentalists – with their suicidal technology-fearing agenda – down the road to negligence and destruction, where we deliberately cut off development of our own natural resources. America has an abundance of almost everything; and it’s shameful, even evil, that we would allow ourselves to be subject to the whims and mendacity of foreign powers.

  2. canary says:

    China explains Obama’s new pick of GE CEO to run finances.
    They keep moving factories and jobs to China.
    The electric car batteries are dangerous & toxic. And they cost a fortune in electricity.
    I’m waiting for the announcement that China owns all our National Parks.
    Don’t forget China used silver to make snow. We will be blue.

« Front Page | To Top
« | »