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China caps rare metals output, raises mandatory quota

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K J M VarmaPTI Beijing
Last Updated : Jan 20 2013 | 2:02 AM IST
I / Beijing April 25, 2011, 14:25 IST

China, world's largest exporter of rare earth metals has raised the mandatory quota for the production and smelting of five minerals this year, said the Ministry of Industry and Information Technology (MIIT).

The quota, set by the MIIT, the National Development and Reform Commission and the Ministry of Land and Resources, allocates the maximum quantity of the production and smelting of tungsten, tin, antimony, molybdenum and rare earth ores in 25 provinces or autonomous regions, the ministry said in a statement today.

Only those enterprises that meet the requirements of national industrial and management policies can get the quota from local governments' supervisory departments and "no extra quota or production beyond the limit will be allowed,"it said.

According to it, the output control target for tungsten concentrates was 87,000 tonnes this year, up 8.75% from last year's 80,000 tonnes. The output quota for tin ores rose 12.3% to 73,000 tonnes from 65,000 tonnes in 2010.

The maximum output limit for antimony concentrates was 105,000 tonnes, compared to 100,000 tonnes last year. The production quota for molybdenum concentrates was 200,000 tonnes, up from last year's 185,000 tonnes.

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MIIT reiterated the control target of rare earth oxide this year was 93,800 tonnes, up 5.16% over previous year, while the quota for rare earth oxide smelting was 90,400 tonnes.

The Ministry of Land and Resources said earlier in March that the mining of certain metal resources would be carried out in a planned manner. China will not grant any new licenses for prospecting and mining of tungsten, antimony and rare earth ores before June 30 of 2012.

As the world's largest rare earths producer and exporter, China supplies 90% of global demand, but its reserves only account for about one-third of the world's total.

China has announced a series of policies for the rare earth and other metal resources industries in recent years to balance environmental protection needs and industrial demands, including stricter emission limits on miners, cuts in export quota and a resources tax.

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First Published: Apr 25 2011 | 2:25 PM IST

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