Canada Export Centre has been awarded the right to sell rare earths on behalf of a Chinese rare earth conglomerate headed by Yongxin Rare Earths Corp. The agreement provides the Canada Export Centre with the authority to sell 1,000 tons of rare earths outside of China over the next six months and 3,000 tons annually. This amounts to more than 10 percent of all Chinese exports of rare earths.
“We are very pleased with this development, and believe that we will be able to help global companies access these valuable but limited materials. Yongxin Rare Earths was founded in 2002 as a processor and refiner of rare earths and has established a highly regarded business. Yongxin’s partners in the conglomerate have export quotas granted by the Chinese government,” said Mark Mensing, President and CEO of Canada Export Centre.
About Rare Earth Metals
More than 93% of the global supply of rare earth metals are produced by China.
Rare earths are characterized by high density, high melting points, high electrical and thermal conductivity and are critical elements in existing and emerging applications, including:
- Clean-Energy Technologies: Hybrid and electric vehicles, wind power turbines, and compact fluorescent lighting;
- High-Technology Applications: Miniaturization of cell phones, personal digital assistant devices, digital music players, hard disk drives used in computers, computing devices, ear bud speakers and microphones, as well as fiber optics, lasers and optical temperature sensors;
- Critical Defense Applications: Guidance and control systems, communications, global positioning systems, radar and sonar; and
- Advanced Water Treatment: Industrial, military, homeland security and domestic and foreign aid applications.
Supply and Demand
China has approximately 58% of global rare earth reserves in the world and yet has dominated production and supply to the global market for over ten years. In 2008, China provided 96% of all rare earths. Data from the Chinese Ministry of Industry and Information Technology shows the output of rare earth products and smelt separation products in China in 2008 was 125,000 tons and 135,000 tons, respectively, of which China consumed 70,000 tons and the balance was exported to other countries. However, China’s annual export quotas have decreased from approximately 65,000 tons in 2004 to approximately 50,000 tons in 2009 to the most recent announcement restricting exports to 7,500 tons for the next six months.
Global annual consumption of rare earths is projected to steadily increase from 125,000 tons in 2008 to 180,000 tons in 2014, of which “non-Chinese†annual demand is projected to increase from approximately 50,000 tons. As a result, worldwide (non-China) demand is expected to exceed supply by 40,000 tons annually unless new sources are developed.
Although about 42% of worldwide reserves of rare earth ores lie outside China, refinery capacity outside of China is limited at least in part due to China’s dominant position on the supply side of the market. Moreover, China’s push to remain the globally dominant player appears to have intensified.
In April 2010, the U.S. Government Accountability Office warned about China’s power over supplies of rare earth materials, noting that most rare earth processing is performed in China, giving it a dominant position that could affect worldwide supply and prices. Rebuilding a U.S. rare earth supply could take up to 15 years. A few rare earth mine sites are under development outside of China, the most significant of which are in Australia, Northern Canada, and California.
| For Additional Information: | ||
| Peter Shearing CEO CE Rare Earth 604-685-7823 ext.103 |
Tracy A. Moore CEO Canada Rare Earth 604-685-7823 ext.126 |
Mark Mensing President & CEO Canada Export Centre 604-685-7823 ext. 116 |
About Canada Export Centre
From our Canadian headquarters we have generated sales for more than 300 international companies. Over the past two years, we have been integral in the completion of $50 million of sales for our clients and the formation of numerous joint ventures; more than $250 million of transactions are currently in progress with Canadian and internationally based businesses.
We work closely with investors seeking opportunities in Canada and internationally and with complementary service providers including logistics, trade finance and corporate finance. Our preferred geographic concentrations are Asia, Latin America and the Middle East where we are proactive in researching international markets, and identifying buyers, distributors, joint venture partners, financiers and investment opportunities for our clients.
Please visit CEC Rare Earth Corp’s website and find out more about Canada Export Centre’s rare earth business.