House Hearing Covers Status of Rare Earth Mining
According to the House Science, Space, and Technology Committee's charter for its June 14 hearing on a National Critical Materials Strategy, China now produces 97% of the world's rare earth oxides and only 22 companies have permits to export it (down from 47 in 2006). Fewer permits have lead to fewer exports - they were slashed by 72% in 2010, and then by another 35% in the first half of 2011 - according to one report. In addition, Chinese export taxes of 25% have been placed on the products.
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The charter also notes that Japan is vulnerable to Chinese export restrictions and suspensions, as it conducts a great deal of the world's rare earth processing.
Molycorp, owner of a mine in California, claims that it has secured all the permits it needed to begin mining ore in 2011, and by 2014 plans to dig up about 40,000 tons of earth to process, compared to its current 3,000 tons. Moreover, Molycorp and Hitachi Metals Ltd. have agreed to form a joint venture to produce rare-earth alloys and magnets, moving Molycorp a step closer to establishing a rare-earth manufacturing chain in the U.S.
The hearing charter also covers the interagency working group that has been established in the U.S. on critical and strategic mineral supply chains.
(While rare earths are abundant in the Earth's crust, they are expensive and difficult to mine. In addition, such mining creates salty waste water, requires toxic materials for processing, and consumes large amounts of electricity.)