China Tightens Grip on Rare Earths

By Joel ScanlonJan 23 2011

The Ministry of Land and Resources in China has used a mining law to gain direct control of 11 rare earth mining districts in southern China. This will allow the Chinese government greater control over production and export of rare earth minerals that are needed to produce many high tech electronics goods.

The mines in the southern end of Jiangxi Province have been placed under the national planning authority. This will remove the control of local officials from the mine and place it under administration of the central government. The local municipal officials have been suspected of tie ups with crime syndicates where they have been conducting illegal strip mining and refining of rare earth elements and smuggling them out for export.

Lei Xiping, secretary-general of the Metallurgical Mines Association of China said to the press that the new policy reflected the great importance attached to strategic resources by the government with the intention of using the resources in a more efficient way.

The supply of rare earth elements has been dwindling to the international community as China imposed a restriction on its exports. At the Chinese president’s visit to America, officials tried to get some assurance from China that it would continue its supply of rare earths but there was no such statement forthcoming.