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Multinational increase supply of rare earth supply

Published:2015-08-03 14:54:17Click to rate：

The United States "Diplomat" magazine published an article in January 10th that the rare earth metals have become an important strategic resource, especially for many Asian countries. It can be said that the rare earth is the next oil". The article points out that some countries, including India, are trying to improve the output of China's rare earth market.
Rare earth metals (referred to as rare earth), including 17 kinds of elements, these elements are widely used in the production of battery materials, catalytic materials, precision ceramic materials, laser materials, is an important material for the modern industry. It can be said, from the high-end military technology to modern electronic products, rare earth and rare earth application products have been deep into all areas of life.
With the increasing demand for rare earths in the international market, as well as the reduction of China's rare earth exports in recent years, some countries that rely on China's rare earth exports will launch a market competition. Some countries, including India, have increased their investment, and their own production and production of rare earth. India plans to increase its output by 3 times in 2017.
2010, China has suspended exports to Japan for two months. Japan, an official in charge of economic and trade, announced that Japan will try to reduce the amount of 10000 tons of rare earth every year, to reduce the dependence on China's rare earth, and the appropriation of $500000000 as a subsidy to support the plan smoothly.
Japan is the world's largest importer of rare earth, has been working with the United States and Australia and other countries to cooperate, to avoid a single import. November 2012, Japan and India signed a memorandum, the import of rare earth orders to the India company 20%.
November 2011, South Korea and North Korea to discuss common mining of rare earth. At the same time, Japan also participated in the talks, decided to carry out the rare earth mining in Burma.
India's rare earth reserves are not rich, so the government has begun to increase efforts to increase production, improve the production of rare earth, to meet the needs of the domestic market. In fact, most of the production of rare earth in India is still used in the domestic market needs.
At present, China and India have begun to prepare for the exploitation of marine resources. Although the current technology is still unable to extract resources from the deep sea, is expected to 2030 to 2040, it is possible to achieve this goal, however, China has been preparing for the exploitation of the work, and won the international mining rights. And India followed suit, began to prepare for the work of the sea.
KPMG's survey report shows that due to the decline in the price of rare earth, the industry is expected to have 75% of the industry will collapse in the next two years. If the prediction said, then the rare earth industry will be in a small part of the rest of the company in more steady development. Because India state-owned rare earth companies will get the support of the government, and China's restructuring of the rare earth market will be more concentrated and stable, easy to manage.
Developed countries such as the United States and Australia are also increasing investment to improve the rare earth production. However, due to the high cost of human resources and strict environmental protection system, those who are responsible for the profits and losses of the enterprise is difficult to stand in the rare earth industry. According to the survey, in 2011, only 4% of corporate earnings. For the developed countries, the economic costs and environmental problems caused by the production of rare earth can not afford many enterprises.
In contrast, some developing countries are less expensive, such as Burma, Mongolia, North Korea and India. Although India's rare earth reserves are low, but due to the low labor force, the India enterprises more competitive than the United States and australia.
In addition, India also hopes to improve the influence in the Asia Pacific region. Japan and South Korea and other countries are also more inclined to import from India rare earth. The geopolitical competition for rare earth will be launched throughout the world.
Although these countries are increasing efforts to produce and mining rare earth, but China is still the world's largest producer of rare earth, but also the most cheap. On the whole, China's rare earth export determines the market price.

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