China currently the supplier of 90% of the world’s rare earth metals is cutting mining rights on these materials by nearly half in order to allow the industry to consolidate.

Mr Chen Zhanheng deputy secretary general of the Association of China Rare Earth Industry said that reducing mining rights helps streamline rare earth development. Illegal mining is a bigger issue that the government needs to tackle a comment seen by some as an indication that another shift in rare earth tactics may be on its way.

Rich in heavy rare earth deposits, China established an 11 state managed mining zone in 2011 spanning roughly 2500 square kilometers. Shortly, a market access standard for rare earth mining will be released. Meanwhile, it has been indicated that qualified enterprises should achieve annual revenues of at least CNY 1 billion.

In March, the USA, Japan and the EU filed a complaint with the World Trade Organization, claiming that China’s limits on rare earth exports was causing harmful disruptions and distortions in supply chains.

Source - Recycling International.com

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