China to Start Stockpiling Rare Earths, Caijing Says
China will start stockpiling rare earth minerals this year, Caijing magazine reported today, citing an unidentified official at the China Nonferrous Metals Industry Association.
The report didn’t say when the stockpiling would begin or give other details. The State Reserve Bureau under the National Development and Reform Commission has yet to provide rules for stockpiling, the report said, citing Niu Jingkao, deputy secretary general of the Chinese Society of Rare Earths.
Inner Mongolia, which contains 75 percent of China’s rare earth deposits, said in Sept. 2009 that the province is considering building a strategic reserve on behalf of the central government. China cut its quota for rare earth exports by 35 percent in the first half this year to reduce pollution and arrest a decline in domestic reserves.
Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co. and other Chinese companies are preparing to stockpile supplies from as early as 2011, Nikkei English News said on Oct. 28. Inner Mongolia Baotou may invest as much as 3 billion yuan ($455 million) over a five-year period in reserves, the report said.
China produces more than 90 percent of global rare earth minerals, a group of 17 chemically similar elements, including neodymium, cerium and lanthanum, used in electric cars, wind turbines and weapons.
--Xiao Yu. Editors: Alan Soughley, Indranil Ghosh
To contact the Bloomberg News staff on this story: Xiao Yu in Beijing at yxiao@bloomberg.net;
To contact the editor responsible for this story: Andrew Hobbs in Sydney at ahobbs@bloomberg.net
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