China this week announced plans to tighten controls over rare earth producers and restrict output in a five-year development strategy, promising to “reasonably set annual quotas for production and export”, but giving no further details. China is the world’s largest producer of rare earths, which are used in products such as flatscreen televisions, lightweight batteries for mobile phones, and hybrid cars. The government also said it would tighten environmental controls and block unauthorized production. The Cabinet added that China would “establish healthy development of the rare earths industry with appropriate development, orderly production, high utilization and technological advancement,” part of an effort by Beijing to transform China from a bulk supplier of raw ores into a producer of higher-value products. Other countries, such as the United States, the European Union and Japan, shaken by the threat of supply disruptions, have begun to start work on developing or reopening rare earth mines, and/or find other sources for the valuable minerals. Japan has considered becoming a rare earths recycling center and is establishing partnerships with other Asian nations, such as Vietnam and Mongolia, to develop new mines. The article can be viewed online at the link below.
http://www.physorg.com/news/2011-02-china-shakeup-rare-earths-industry.html