China warns its rare earth reserves are declining

[Eugene]

Source: BBC

20 June 2012 Last updated at 07:11 GMT

China warns its rare earth reserves are declining

China has warned that the decline in its rare earth reserves in major mining areas is "accelerating", as most of the original resources are depleted.

In a policy paper, China's cabinet blamed excessive exploitation and illegal mining for the decline.

China accounts for more than 90% of the world's rare earth supplies, but has just 23% of global reserves.

It has urged those with reserves to boost production of the elements, which are used to make electrical goods.

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Read more: http://www.bbc.co.uk/news/business-18516461

[Art_from_Ark]

1. The problem with most known rare earth ores

is that they contain radioactive materials, particularly thorium, which must be either processed for limited use as a nuclear fuel, or disposed of. There is currently a lot of research about processing rare earth ores, but the thorium problem is still one of the major limiting factors.

[OllieLotte]

3. They are attempting to create a greater sense of scarcity.

They are the low cost producer because they are mostly indifferent to the pollution.

[Art_from_Ark]

4. You have nailed it

The Chinese are indifferent to the pollution resulting from rare earth mining and smelting, and other countries that have rare earth resources are hesitant to develop them because of these concerns. So China holds the high cards right now.

To the best of my knowledge, there are two major rare-earth mining operations in the US (one in Colorado, one in Idaho/Montana), but they are small in scale. There has been growing interest in using thorium in molten salt reactors, and the technology has been available since the 1960s, but it was abandoned in favor of uranium in the 1980s. Here in Japan, there is a lot of interest in developing undersea rare-earth resources (which don't contain so much radioactive material), but the cost makes it economically unfeasible at the present time.

[OllieLotte]

6. Jim Jubak tracks Lynas, an Australian rare earth.

The investment is like Mr. Toad's Wild Ride. I don't have the nerve to buy it.

[Art_from_Ark]

7. Lynas has a majority stake in the Mt. Weld mine in Australia

Apparently, while Lynas is billing the mine as the largest rare earth mine in the world, it has only started operations this quarter, if it is on the schedule outlined on the company's web site. So until there are some long-term results, it looks like investment will continue on Mr. Toad's Wild Ride.

[Franker65]

2. Surprising

Of course this announcement was going to happen eventually but still, I'm surprised this has happened so soon. It must have been a huge amount of mining over the last decade. Hopefully, it won't cause huge problems down the line...

[FrodosPet]

5. We NEED to hope it is a trick

If not, the future is going to be rough. Without high strength rare earth magnets, electric motors and generators strong and light enough for cars and windmills are an impossibility.