Rare Earth News
China extends crackdown on rare earth exports, prices remain high
On Thursday, September 15, a senior industry officer told Reuters that it is "unrealistic" to expect rare earth prices to fall back to previous levels as China continues to limit its exports of rare earth elements REEs.
Li Zhong, the vice-general manager of Baotou Steel Rare Earth Hi-Tech Holding, told a conference in Beijing that China plans to gradually wind down its role as the global supplier of REEs, as the country has decided to focus more on its domestic market, the media outlet stated.
However, many analysts believe the reduction in exports was a move to attract foreign consumers of rare earth to China.
"There is roughly a 40 percent difference in the cost of rare earths if you're buying on an export basis, due to the cost of the quota and the export tax," Michael Silver, chief executive of American Elements, told Reuters. "A company that moves here gets an incredible benefit."
However, many other countries are picking up right where China left off. Large deposits of REEs have been found in the lower James Bay region of Quebec, where exploration efforts have begun to distinguish any REE, such as niobium and tantalum enriched lithologies.