【By Observer Net, Zhang Jingjuan】According to a report by Bloomberg, on October 30 local time, Amanda Lacaze, CEO of Australian rare earth giant Lynas Rare Earths Ltd., created anxiety during an investor conference, stating that global rare earth buyers must accept premiums to obtain secure and stable supply from outside China. "A considerable portion of our clients think that if they just close their eyes and pray, this will disappear, and they can continue to use cheaper rare earths from China," she said.

Australia is the fourth largest producer of rare earths in the world, with companies like Lynas located there. These companies advocate for sustainable mining and refining. The Mount Weld mine in Western Australia has one of the largest rare earth deposits in the world. In recent years, Australia has positioned itself as a leading alternative supplier of critical minerals, aiming to break China's monopoly in the global market.

The report pointed out that Lynas' development has relied on the "blood transfusion" from Japanese companies. After China used the "diplomatic card" of halting rare earth exports to Japan in 2010, Japan sought to establish alternative suppliers, and some Japanese companies provided assistance, including Daido Steel Corporation.

This company has recently begun importing heavy rare earths from Lynas, which are the first heavy rare earths extracted from Australian ore and then separated and refined at Lynas' Malaysian factory before being exported to Japan. However, the company refused to disclose the quantity or price of the imports.

The president of Daido Steel Corporation said, "This is a very unique market structure," and government support would be necessary to help producers set economically viable prices.

Lacaze claimed that, in addition to direct investments in early projects, some proposed policy measures may be "a bit more complicated," and regulation should focus on addressing the issue of prices not supporting viable industries outside China. "I think governments around the world understand that injecting money into an industry that cannot make a profit in the long term is useless," she said.

Lacaze, Bloomberg

Rare earth metals and magnets are essential materials for high-tech products such as smartphones, electric vehicles, and fighter jets. China has long recognized their importance and has established a dominant position in the global rare earth mining and processing industry over several decades. Data shows that China controls about 70% of global rare earth mining, 90% of separation and processing, and 93% of magnet manufacturing.

In April this year, after the Trump administration imposed excessive tariffs on China, China included rare earth items in its export control scope. On October 9, according to new regulations published by China's Ministry of Commerce, China will implement export controls on certain foreign rare earth-related items containing Chinese components and rare earth-related technologies. The Financial Times reported that this means any magnetic materials produced using Chinese rare earth components or Chinese rare earth mining, smelting, magnet-making technology must be approved by China when exported abroad.

The new regulations cover rare earth magnets and some semiconductor materials containing 0.1% or more of Chinese heavy rare earths, manufactured abroad, as well as certain items produced overseas using technologies related to Chinese rare earth mining, smelting and separation, metal smelting, magnet manufacturing, and recycling of secondary rare earth resources. These items will be subject to the new regulations starting December 1; for some items originally produced in China, the new regulations will take effect immediately. Additionally, China will "principally not approve" most export licenses for military applications. Export applications involving AI with potential military uses will also be "reviewed on a case-by-case basis."

Regarding the rare earth issue, the Ministry of Commerce previously stated that rare earth-related items have dual-use characteristics, and implementing export controls is a common international practice. Therefore, the Chinese government legally implements controls on certain foreign rare earth-related items containing Chinese components to better safeguard national security and interests, and fulfill international obligations such as non-proliferation.

As a responsible major country, China's implementation of controls on relevant items reflects its firm commitment to maintaining world peace and regional stability, and actively participating in international efforts against proliferation. China is willing to strengthen communication and cooperation with all parties through multilateral and bilateral export control dialogue mechanisms, promote compliant trade, and ensure the security and stability of the global supply chain.

This article is exclusive to Observer Net. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7567265740895339042/

Statement: The article represents the personal views of the author. Please express your opinion by clicking on the [Up/Down] buttons below.