Lynas Says China Rare Earth Export Quota Cut May Stay

Lynas Corp., building a A$550 million ($517 million) rare earths mine in Australia, said China’s export quotas cuts for the minerals used in hybrid cars and iPods may be permanent as domestic demand gains.

“It would not surprise me if China turned into a net importer of rare earths over the next five to 10 years because more and more technology is emerging from China” that uses rare earths, Nicholas Curtis, executive chairman of the Sydney-based company, said today in an interview. “They’ve cracked down heavily on the illegal mining, on the environmental damage, on the illegal smuggling of rare earths and putting order back into an industry that was chaotic in China.”