According to Chen Zhanheng, vice-secretary general of the Association of China Rare Earth Industry, Chinese rare earth demand will increase 50% in the next five years, putting pressure on China to eliminate production quotas.
China currently produces 90% of global rare earth supplies, while consuming 80%. In 2015, China will export 30,000 tonnes through official channels. The fractured rare earth industry is consolidating production into six government controlled conglomerates.
The demand for rare earths outside China is growing faster than supply.
The giant Sumitomo Corp, Japan Oil, Gas and Metals National Corp and Kazatoprom are the three partners in the undertaking which will provide Japan with more than 10 percentof its annual dysprosium requirements. “We think that there is a very good investment climate in this country and that consequently Japanese companies can make long term investments here,” Yerzhan Ishanov, business development manager for Central Eurasia for Sumitomo Corporation, told EdgeKz.
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