Resource News
China tightens its grip on technological future
By resourceINTEL · September 3, 2009 · 8:50 am · Leave a Comment
SPIRALLING fears that China is plotting to choke off the global supply of critical “technology minerals” used in products ranging from hybrid cars to laptop computers appear to be confirmed.
Beijing is understood to be planning to impose tighter controls on exports of the 15 rare earth metals as part of a plan to make more aggressive strategic use of its natural resources.
Several industry insiders say they have seen a draft proposal by China’s Ministry for Industry and Information Technology slashing rare earth export quotas between now and 2015.
Such a move has been dreaded in industrial circles since China grasped a 95 per cent monopoly over global rare earth production a decade ago and cast itself as the “Opec of rare earth metals”.
If enacted, it would almost certainly trigger complaints by the United States and Japan to the World Trade Organisation.
Moreover, the proposed new export restrictions are likely to be accompanied by the creation of a global rare earth metals production giant, a company with the potential to develop similar global economic clout to an oil major.
Zhao Shuanglian, vice-chairman of the China’s Inner Mongolia autonomous region, said that Boutou Steel Rare-Earth High-Tech Co would lead a consolidation of the region’s scattered rare earth miners “to create certain economies of scale”…read more at The Australian
