Russia may cash in as China cuts rare earth metal exports

hina’s decision to reduce exports of rare earth metals shocked the world, but

the crisis could be an opportunity for Russia

In a dramatic move that rattled its trading partners, China announced last year that it would further reduce exports of rare earth metals （REM） by 10pc in 2011. The decision sent shock waves across the industrialised world as manufacturers are heavily dependent on China for the metals。

What compounded the worries was that China had a virtual monopoly, providing 97pc of the world’s supply.

Beijing’s decision was strategic. Last July, the People’s Daily published an article by Li Bing, an international strategy expert of the Central Party School.

Beijing’s unilateral quota triggered a hysterical reaction and also prompted a search for alternatives.

In northern Russia, for instance, the Lovozersk integrated mining-and-processing plant （IMPP） mines loparite ores （which contain a wide range of REM: tantalum, niobium, zirconium, lanthanum, cerium, etc） and the Solikamsk Magnesium Plant （SMP） processes concentrates of these. But these facilities focus on the production of magnesium; the rare earth metals business is merely auxiliary.