Chinas illegal teCh metals supply still rampant

Illegal mining, pollution and smuggling remain rife in Chinas

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 Chinas 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.

High-strength magnets were the most significant market for the current
markets volume demand and growth projections over the next five years,
which was why the revelation about Chinas 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 worlds 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.

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 Chinas tolerance for illegal mining
is quickly diminishing.

As part of its efforts to control illegal mining, China, which produces

more than 90 percent of the worlds 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.

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