Rare earth metals are a resource that is used to make a variety of products some of which are related to national security and national defense. China is the world’s largest source and exporter of rare earth metals. With fierce competition between mining companies for the mineral market, the mineral ores are sometimes sold at prices lower than the price of pork.
According to the Heilongjiang Morning Post, China set up a team for controlling rare earth metal resources in 1975 and this department is still in operation. In 1991, rare earth metals were listed as protected minerals. To protect rare earth metals, China established policies and organizations to oversee the related industries. Even China’s oil resources are not protected in this way. However, the rare earth industry in China has not developed refining processes but has remained as a seller of raw mineral ores for decades.
Ten years ago, China’s accessible rare earth metals accounted for 80 percent of the world supply, but the amount is down to 52 percent now. If the current production methods are not changed, China may experience a severe shortage of rare earth metals within 20 to 50 years.
The report said that China’s rare earth metals are mainly sold to Japan, South Korea, and the United States. At present, cerium oxide of 99.9 percent purity is sold for 18 yuan (approximately $US 2.64) per kilogram. It is even cheaper than the price of pork in China, as the meat price can increase substantially during certain festival times.
The report said that China is number one in the world for resources and production of rare earth metals. China has 70 percent of the world’s rare earth metals and produces 80 to 90 percent of the world supply. Sixty to seventy percent of rare earth metals are exported to other countries.
The report pointed out that rare earth metals are called the “vitamin of industry.” They have excellent physical properties that can produce a variety of new materials. The most notable feature is that they enhance the qualities and functions of other products; for example, in alloys of aluminum, magnesium, and titanium.