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.

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.

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.

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.

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