China Rare Earths Exports Skid By 40%

China will export less than 10,000 tonnes of rare earths this year

The amount of rare earths legally mined and shipped from China had dropped by 42.7 per cent in the first six months of the year versus a year ago, spurred by the continued rampant smuggling in the country, aggravating concerns that Beijing's overall exports of the precious metal elements could further dive this year.

A report by the China Daily said legally exported rare earths from China have fallen to 4,908 tonnes, citing statistics from Chinese customs officials.

China had earlier said it can export at least 31,130 tonnes of rare earths this year. But with the present reality of illegal mining plus dwindling global demand, it could occur that China will export less than 10,000 tonnes of rare earths this year, the report said.

Rare earths metals are highly important in the manufacture of a number of high-tech products, including wind turbines and electric-car batteries, as well as household items such as colored TVs, mobile phones, among others.

China's strong intent to curb illegal and rampant mining and smuggling of its rare earths largely has been the major reason that caused the decline of the legal exports of the materials.

In just over the past six months, police authorities in south China's Guangdong Province had closed nine illegal rare earths miners in Longchuan County, arrested 45 people and confiscated more than 100 tonnes of rare earths.

Longchuan County, according to People's Daily Online, is one of China's major reserves for rare earths. Over the last few years, more than 110 illegal rare earths mines have been closed in the area. Police is now closely monitoring the shutdown mines and restoring vegetation in the immediate surrounding areas with the help of the community.

China has implemented a line of successive strategies and policies, including production caps and export cubs, along with tighter emission standards and bigger resources taxes, to regulate its rare earths sector and help fight rampant smuggling as well as control further damage to its environment.

Illegal smugglers of the precious metal elements saw the huge demand of the market for rare earths, further tempted by the prices it commands. In 2011 alone, according to a white paper released in June by the Beijing's State Council, it said that the total amount of rare earths exported was 2.2 times bigger than the official amount accounted by Chinese customs officials.

After ballooning last year, prices of rare earths have dropped in the first three months of 2012. It has remained level since then.