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Backpedaling, China Eases Proposal To Ban Exports Of Some Urgent Minerals

Written by Author on September 14th, 2009

BEIJING — Chinese officials said on Thursday that they would not entirely ban removes of two minerals urgent to manufacturing crossbreed automobiles , cell phones, large wind turbines, missiles and computer monitors, although they would tightly regulate production.

China makes more than 99 percent of the world’s supply of terbium, above, and dysprosium, used in industry .

China produces more than 99 percent of the world’s service of dysprosium and terbium, two rare minerals basic to recent breakthroughs in high-technology industries.

A bureaucratic regrouping in Beijing this year prompted a review of Chinese policy, and rules were drafted that would ban the export of these minerals. That incited anger and dismay from Western governments and multinational firms that depend on Chinese supplies.

Wang Caifang, representative director general of China’s Ministry of Industry and Information Technology, tried on Thursday to calm anxiety that the draft rules would become the final policy, saying the regulatory review was still under way.

“China is very responsible . We will not take casual decisions. All our decisions will be consistent with scientific growth ,” she said in a speech at the Minor Metals and Rare Earths 2009 meeting in Beijing. “China will not close its doors.”

During an interview after her conversation , Ms. Wang said that China would continue to set an yearly quota for the export of each mineral, adding, “I don’t think it will be zero.”

Dysprosium and terbium are two of the most valuable , scarcest and most sought-after minerals among the 17 rare-earth constituents . China mines 93 percent of the world’s rare-earth minerals, which have a wide range of obscure but crucial industrial applications, like the manufacturing of ceramics and stainless steel.

A duplicate of the draft rules , viewed Thursday, said China would additional reduce its combined yearly export quotas for all rare-earth elements to 35,000 tons a year, from 53,000 tons last year and almost 66,000 tons as recently as 2005.

The draft policy also clearly stated that exports of dysprosium and terbium were to be banned along with exports of three other rare-earth elements : thulium, lutetium and yttrium. But Ms. Wang seemed to back away from that.

By cutting removes , as well as putting a total tax of 42 percent on exports of dysprosium, terbium and some of the other rare-earth elements , Beijing officials have successfully required manufacturers industries of advanced magnets, motors and other technologies to move their plants to China, where the minerals are readily accessible .

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