CHINA, which holds one-third of the world s reserves of and produces 95 percent of global supplies of rare earth, may start importing some of the material to meet rising domestic demand, according to Liu Junhua, a Chinese official.
China may eventually need to import the materials, Liu, deputy secretary for Baotou Rare Earth High-Tech Industrial Development Zone Committee, said yesterday in an interview after speaking at the International Rare Earth Summit in Pittsburgh, Pennsylvania. There s a strong possibility of importing heavy rare earth in the next three to four years, he said.
Domestic Chinese demand for rare earth has increased as much as 200 percent in the past 12 months, with almost half of that increase coming since the start of the year, Liu said.
The mines in the Baotou region produce so-called light rare earth including lanthanum, cerium and samarium. Heavy rare earth production, concentrated in the South China, includes the elements dysprosium, gadolinium and terbium.
The Chinese Government slashed export quotas by 72 percent in the second half of last year for the elements that have uses ranging from high-end magnets in U.S. weapons to catalysts in petroleum refining. The country has committed to a 35 percent cut in the first half of 2011 from the level a year earlier. Export quotas for the second half of 2011 may be announced only in July, Liu said.
China has about 36 percent of global rare earth reserves and the United States has 13 percent, according to the U.S. Energy Department.
(SD-Agencies)
