Source: Mineweb.com                 Date: 21 June, 2011

Chinese industrial executives say the world's supply of rare earth minerals will outstrip demand within five years, ending reliance on China's exports. Mr. Wang Hongquain, general manager of China Nonferrous Metal Industry's Foreign Engineering and Construction Company (NFC), told China Daily more nations with large rare earth deposits will resume exploration, which will lead to a global reallocation of the minerals. While China only controls 36% of the world's deposits, countries with large reserves, such as the U.S. and Australia, have yet to unfreeze exploration of the minerals.

Late in May, China's Minister of Land and Resources Xu Shaoshi revealed government plans to maintain tight control over the rare earth sector. The first of its kind in more than a decade, the guideline is designed to enhance industrial consolidation, crack down on smuggling and illegal mining practices, and set up a national strategic stockpile system for heavy rare earth metals.

Mr. Mark Watts, online news editor for the publication Industrial Minerals, has said heavy rare earths prices have surged since the Chinese announcement. The price of most has more than doubled, while dysprosium oxide, used in plasma TVs, smart phones and energy saving light bulbs, has increased 142% to USD3,400/kg.

Editor Mike O'Driscoll said the lack of alternative REE supply outside of China, coupled with a forecast of a 48% increase in world REE demand to 185,000 tons in 2015 and shortages of dysprosium and neodymium, have contributed to the rapid price increases.