Here’s the latest reason to be bullish on rare earth metals mining outside of China — The country could reduce export quotas by as much as 30% next year according to an official of the Ministry of Commerce via China Daily.
This reduction announcement comes after China already cut export quotas for the second half of 2010 by 72% to 7,976 tons.
The official says that China is concerned that it is depleting its domestic reserves far too quickly.
This is just bad news for a global market 95% supplied by China.
Rare earths exist in abundance across the world, such as in the U.S., but proper mining infrastructure takes time to reopen or develop anew. So in the near-term, this sounds like a recipe for soaring rare earths metals prices, and great prospects for anyone involved in rare earths mining outside of China. Likewise, it could be a migraine for consumers of rare earths, such as, well, anything that uses modern battery technology.