China sets 2023 rare earth mining quota at 240,000 tonnes, up 14% yoy
CHINA has doubled its rare earth mining quota for this year to a record high of 240,000 tonnes, government data showed on Monday (Sep 25).
Rare earths are a group of 17 elements used in products from lasers and military equipment to magnets found in electric vehicles, wind turbines and consumer electronics such as iPhones.
China’s quotas are closely watched as a supply indicator and typically issued twice a year.
The full-year mining output quota for this year, including 120,000 tonnes issued in March, represents a 14 per cent rise over 2022, China’s Ministry of Industry and Information Technology (MIIT) and the Ministry of Natural Resources said in a joint statement.
That is, however, a smaller increase than the 25 per cent implemented from 2021 to 2022.
The country’s annual quota for smelting and separation of rare earths also rose by nearly 14 per cent from 2022 to 230,000 tonnes, including 115,000 tonnes announced in March, the statement showed.
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China is the world’s largest producer and consumer of rare earths and rare earth magnets.
Rising supply has pushed down prices of rare earths and partly contributed to shrinking profits among major producers in the first half of the year.
Spot prices of praseodymium oxide in China have fallen 24 per cent this year to stand at 530,000 yuan (S$99,032) per tonne last Friday, data from information provider Shanghai Metals Market showed.
China Rare Earth Resources and Technology, major producer, posted an 85.13 per cent year-on-year drop in first half profit, its interim report indicated.
China’s exports of rare earths in August rose 30 per cent from a year earlier to 4,775 tonnes, according to customs data. REUTERS
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