• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 14 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 7 hours EU to Splash Billions on Battery Factories
  • 11 hours U.S. Shale Oil Debt: Deep the Denial
  • 19 hours The Balkans Are Coming Apart at the Seams Again
  • 4 hours Owning stocks long-term low risk?
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 7 hours The Dirt on Clean Electric Cars
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 21 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours The end of "King Coal" in the Wales
Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Oilfield Service Companies Bet On Full Recovery

Oilfield Service Companies Bet On Full Recovery

The return of the drilling…

China’s Rare Earth Industry is Still Dominated by Illegal Operations

Despite a two year campaign aimed at cleaning the sector and removing all unlawful operations, China has admitted that its rare earth industry still suffers greatly from pollution, smuggling, and illegal mining.

Rare earth elements provide vital functions in all modern day technologies, and China holds an almost complete monopoly of the market, producing more than 90% of the world’s rare earth metals. In an attempt to create more order in the sector the Chinese government has tried to consolidate output under the control of six large state-owned miners, and have set strict production and export quotas on a small number of authorised firms.

The large, developed economies of Europe, Japan, and the US, have all submitted complaints to the World Trade Organization that China’s actions are restricting supply of the vital rare earth elements to the global market, and thereby giving Chinese technology firms a huge competitive advantage. China argues that it is not willing to put a strain on REE producing regions, such as Inner Mongolia, and potentially damage the environment, just so that it can supply large volumes to the global market.

Related article: Pentagon Says Rare Earth Elements Less at Risk

Whilst concerns for the environment in Mongolia may seem dubious reasons for China, not historically the most environmentally conscious of countries, to want to restrict rare earth production, the attempts to consolidate the market in order to flush out all illegal activity do seem more genuine.

Unfortunately progress has been slow. Su Bo, the industry’s vice-minister, explained that local governments have been protecting many of the illegal operations meaning that the new laws and regulations were not implemented properly. Now the local governments have once more been ordered to clean up illegal activities, with new, even stricter rules to be released soon.

The six firms, which include giants Minmetals and Chinalco, will continue to grow their control of the sector by absorbing smaller REE producers, and will play an important role in reorganising the industry. Just last week, Inner Mongolia Baotou Steel Rare Earth Group announced that it had taken control of nine regional mining companies after signing a deal with the local government.

By. Charles Kennedy of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News