Rare earth mineralsChina's share of rare earths minerals declining amid falling demand

Rare earth mineral samples // Source: usgs.gov

China still dominates the world’s rare earth elements market, but its share in global production has been steadily decreasing in recent years. A new study which shows a dramatic decline in these minerals’ prices has shaken he industry.

Germany’s Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) says that a new study by the institute’s researchers found that in 2013, China accounted for 92.1 percent of high-tech rare earth oxides produced in the world. The percentage is still high, but it is a decline from 2010, when China accounted for 97.6 percent of global production of the mineral and fell to 95.1 percent in 2011.

BGR said that 4.2 percent of rare earth elements were produced in the United States last year, with another 2.3 percent produced in Russia and 1.3 percent in Malaysia.

The oxides are important in the manufacturing of mobile phones, flat-screen TVs, and wind power turbine components.

BGR notes that global growth has been weak in recent years, and as a result rare earth oxides production had decreased. In 2009, 133,500 tons were mined, but production declined to 90,500 tons last year.

The study highlight the fact that 2011 saw a dramatic decline in the minerals’ prices, leading to a global search for other rare earth deposits outside of China. The BGR study notes that since 2011, about 440 new deposit sits have been discovered. BGR says that the known rare earth minerals reserves would suffice to meet global demand 285 at current industry output levels.

China has been trying both to arrest to fall in mineral prices and to increase global demand rare earth elements. Among other things, China as adopted tougher measure to combat smuggling.

BGR expert Harald Elsner says that according to recent estimates, in 2010 and 2011, up to 35,000 tons a year of rare earth elements have been smuggled out of China.