The impact of unregulated ionic clay rare earth mining in China. (June 2016)

• Record Type: Journal Article
• Authors: Packey, Daniel J.; Kingsnorth, Dudley
• Is Part Of: Resources policy. Volume 48(2016)
• Page Start: 112
• Page End: 116
• Publication Date: 2016-06
• Subjects: Illegal Mining -- Market Impacts -- Rare Earths -- Ionic Clays -- Environment; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2016.03.003
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: The ionic clay rare earth resources in China are the cheapest and most accessible source of heavy rare earths. They are also the most valuable. The Chinese rare earth market has an uncontrolled illegal market segment that represents approximately 40% of the domestic market, which translates to 30% of the global market. This sector of the market pays little or no attention to the environmental damage of their mining and processing actions and, through their unregulated supply, depresses the market price such that external (and in some cases, internal) producers are having difficulties making or maintaining profit margins. It creates significant negative externalities that adversely affects the native environment and the international rare earth market. Highlights: Most competition in the Rare Earth Market is internal by illegal Chinese miners. Illegal mining of ionic clays cause a significant amount of uncontrolled environmental damage. The quotas for the rare earths do not meet the requirements of the domestic industries. Illegal rare earth activity is necessary for Chinese manufacturers to meet quotas. China will dominate rare earths through Six (6) SOEs supplying approx. 90% of global needs.