China’s illegal tech metals supply still rampant

2. China’s illegal teCh metals supply still rampant China’s illegal teCh metals supply still rampant Illegal mining, pollution and smuggling remain rife in China’s technology metals industry despite a two-year government campaign to straighten out the sector. Illegally mined Tech metals supply in China believed higher than previously thought. In detail, a large portion of tech metals from China, used in the production of high strength magnets has been found to be illegally produced. Industrial Minerals Company of Australia, market expert Dudley Kingsnorth revealed that 40% of China’s technology metals’ supply, for high strength magnets is from illegally mined sources in the country. Prof. Kingsnorth was citing experts within China who are involved in the mining of the elements as well as the government-led association of technology metals.

3. High-strength magnets were the most significant market for the current market’s volume demand and growth projections over the next five years, which was why the revelation about China’s sourcing, was significant, said Benchmark Mineral Intelligence analyst Simon Moores. According to Prof. Kingsnorth, in 2020 the magnet market will consume about 30% of total technology metals produced in the world. The magnet market is forecasted to rely on China for 70% of its elements. A major use for many of the technology metals is in permanent magnets. China is the leading supplier of the magnets used by some of the world’s largest corporations including Siemens and General Electric. The demand for technology metals such as dysprosium, neodymium, terbium, europium and yttrium has increased proportionally with the advent of new electronics, hybrid automobiles, and mobile technologies. These metals are becoming increasingly used in permanent magnets and rechargeable batteries. Tech metals and their benefits to modern technology and energy storage has become a sought after factor in many industries. China continues to control the tech metals supply despite the fact that the United States, Japan and Germany are making big investments to secure their own supplies, but these new mining projects may take a decade to come on stream and the tech metal recycling rates remain very low still.

4. The Chinese government strictly controls any unlicensed mining activity which occurs in the technology metal industries in the country as it is a wasteful process, environmentally damaging and gives the country bad press; but China’s tolerance for illegal mining is quickly diminishing.

5. As part of its efforts to control illegal mining, China, which produces more than 90 percent of the world’s technology metals, has been trying to impose order on the industry, seeking to consolidate output in the hands of big state-owned miners and imposing strict production and export quotas on a small number of authorized firms. Local governments have been ordered to crack down harder on illegal activities, and much tightened rules for the sector would be implemented soon. Dubai, UAE Office #1702, One Business Bay First Al Khail Street Tel: +971 (0) 4447 0990 Fax: +971 (0) 4453 8811 info@electio-invest.com