Countries eye Canada as China cuts rare earth exports
23 Dec 2011
With China's export cut of rare earth elements choking global supplies, countries are making a dash to source these minerals from Canada by forming JVs with Canadian firms to secure their supplies, on hopes of finds in the country.
China is believed to have the world's largest concentration of rare earth minerals. It currently produces 97 per cent of rare earth elements and accounts for nearly 95 per cent of global supplies.
Japan, among the largest processors of rare earths, is desperately searching for new supply sources, while Europe has a new strategic plan to these elements.
Rare earth metals are a set of 17 chemical elements that despite their name are abundant in the Earth's crust, but very dispersed and rarely found in economically exploitable concentrations.
Rare earth minerals have multiple uses such as – smartphones, wind turbines, halogen lights, precision-guided missiles, computer disc drives, X-ray imaging, flat-screen televisions and a host of other applications.
China's cut in exports of these minerals, shortly after its Naval spat with Japan last year caused particular alarm in nations such as Japan, which thrive in the production of high technology items, electronic goods and auto parts, where these minerals play a vital part.
Shipments of rare-earth metals to Japan were blocked by Chinese customs since 21 September 2010, following the arrest of a Chinese fishing boat captain by Japan near its disputed islands in the East China Sea. Even after the captain's release, tensions continued to run high between the two countries. (See: China-Japan territorial stand off hits rare earths imports into Japan).
