A scramble for rare earth minerals is on.
China announced yesterday that it would cut its rare earth mineral export quota in 2011, following steep reductions in 2010. While the move is sure to deliver some short-term pain to industries in Asia, Europe and the U.S., it has been a boon for Australia:
'Australia's emerging rare earths producers and explorers are enjoying a year-end surge in value thanks to China's latest move to limit supplies from its dominant industry to the rest of the world....According to the US Geological Survey, rare earths are relatively common within Earth's crust but, because of their geochemical properties, are not often found in economically exploitable concentrations. It said new mines in Australia, the resumption of a big mine in the US, and the possible development of other deposits there and in Canada ''could help meet increasing demand''.
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As Ian MacKinnon reports, the international scramble to shore up new sources of supply is creating some uncomfortable bedfellows - such as a tie-up between South Korea and Burma.