Rare Earths: Market Outlook to 2015 The rare earth industry is at an inflection point

The rare earth industry is at an inflection point, with new sources of supply from mines outside China, under more effective control over China's industry is an increase in state-controlled enterprise-led business mergers, and a reassessment of rare earth use is taking place a year. Unprecedented high prices. Shifting supply patterns In 2011, China accounted for an estimated 94% of world supply, with most of the remainder coming from Russia and the United States. By 2015, the world will account for just over a quarter of the world's supply, a proportion that could increase further over five years to 2020. Since 2006, Chinese government controls on exports, such as mining licenses and quotas, have become more effective. In 2011, further controls were introduced and mining rare earths, and now all companies must show that they have a mandatory production plan, appropriate planning permission, environmental certification and a safe production license. In addition, enterprises that exceed production quotas can have their business licenses revoked. In 2011, the Chinese government also introduced stricter controls on emissions from processing plants, effective October 1. In order to ensure that measures to control output and reduce exhaust emissions are achieved, consolidated control of the production process has been in place since 2007. Baotou Steel controls the flow of rare earth concentrate from Baiyunaobao's coal mine in Inner Mongolia by the end of 2011 and will control most of the cracking and separation capacity. In southern China, where key heavy rare earth deposits are located, several companies have been involved in the integration process, including China Minmetals, Chinalco, and Guangdong Rising Nonferrous Metals. The structure of the rare earth industry is changing, not only in terms of resource development outside China, but also in the determination of companies inside and outside China and fully integrated into downstream products such as magnets and phosphors. It will continue to be a merchant producer providing the role of the separated oxide, but it will be more visible than in the past. In the past five years, the Chinese market demand has grown in the key rare earth merchant price range between 5% in 2005 and 2010. Although the global economic recession has significantly negatively impacted demand around the world, the market has shrunk in 2009 Annual global demand for rare earths grows. Demand growth in China is much higher, running at 11% PY and the country currently accounts for 70% of world demand. The total demand in 2010 is expected to be 125,000 tonnes, REO. Rare earth consumption around the world fell by nearly 4% PY between 2005 and 2010. The decline is partly due to the impact of the economic downturn, but also reflects the growing volume of downstream processing in China and tightening export quotas.