COMMODITY REPORT: "Will China Tighten 'Rare Earth' Grip? Beijing Tries to Quell Concerns Over Metal Exports; Key to Hybrid-Car Industry," by Chuin-Wei Yap, Wall Street Journal, 3 September 2009.
China tightened control on the mining and export of rare-earth metals, saying it wants anybody who exploits their reserves to come to Inner Mongolia to manufacture there and thus bring jobs. Rare earth metals have a number of high-tech uses, like in batteries for hybrid cars.
China produces more than 90% of the world's output, but not because it has a chokehold on the supply. The West simply hasn't made the effort to exploit its resources and those of other nations. In the U.S., we mine only at one significant deposit in California. Japanese firms are currently exploring options to develop mines in Kazakhstan and Vietnam.
So go easy on the projected resource-war dreams.
If the shoe were on our foot, making such demands would be considered politically correct.
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