Tuesday, 15 March 2011

The Importance Of Rare Earths News In The World.

By Ben Eugene


It would appear that the term rare earth is something of a misnomer, since it is composed of elements that are not really uncommon. Any oxide of the element lanthanide is included in the term. There are fifteen such oxides, but the elements scandium and yttrium, also fall within the category, so there are actually seventeen elements involved. They are widespread over the earth's crust, but seldom found in concentrations which permit economic exploitation. Nevertheless rare earths news has dominated headlines recently.

One hypothesis is that the elements concerned entail a significantly unusual combination of minerals and events which make the planet earth an uncommon place in the universe. If this is true than it is unlikely that complex life forms will exist outside of Earth since the planet is unique. However, the contrary view is that Earth is a common rocky planet in the universe. If this is true, it follows that life similar to that found on Earth will probably exist elsewhere in the universe. So, the issue of whether we will ever discover aliens in space is connected with the geological origins of the earth.

"Ytterbite" was found in Sweden in the nineteenth century. The other constituent elements were gradually isolated in the years that followed. It has become more and more useful as technology has become more sophisticated because it is essential in equipment used in military and scientific installations.

Rare earths are used in equipment that includes batteries and magnets. Many new inventions in fields such as robotics and electric cars depend on such components. Consequently demand increases steadily, and will probably continue to do so into the future as technology becomes yet more sophisticated. Increase in demand has obvious financial implications.

Initially the main sources of rare earth were India and Brazil. In the middle of the twentieth century large deposits of monazite were discovered in South Africa. The relevant elements were carried in these rocks, and as a result South Africa became the primary supplier in the world. As China has opened its economy to the world since the 1970s, so it has replaced South Africa as the main source of supply. It produces more than 90 %, mainly in Inner Mongolia.

With China's membership of the World Trade Organization (WTO) came many trading opportunities and also some obligations and global regulations. Members are obliged to observe certain trade practices, and conform to standards of production. Governments must also abstain from undue interference in trade for political and military purposes.

Some WTO members have been concerned that China, with 90% of the world's resources, has imposed some bans on export, and restrictions on production. It has been claimed that this is for political purposes and will give China strategic advantages in military and political spheres. There have been representations at the WTO forum.

However, China claims to be motivated solely by environmental concerns. It argues that radio activity and toxic waste are by-products of rare earth production, and that strict regulation and control is necessary to protect the environment, and prevent pollution. It rejects the claim that it is using its dominance as a rare earth producer to threaten other countries.




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