rare earths .. more chinese export quotas

I posted the following on the NAV thread. It is just as applicable here.

Despite the issues last year, the booming demand combined with Chinese export quotas must auger well for ARU imo.

Rare earths are a 21st. century metal used in all sorts of must haves like mobile phones.

The simple fact is that China, which dominates the world rare earths market, has a "stated intent to upwardly revalue and limit the export of China's significant recoverable rare earth reserves."

"American Elements Advises of New 25 Percent Export Tariff by Chinese Government on All Rare Earth Metals and Compounds

The new round of tax increases on rare earth materials by the Chinese government first anticipated to occur two months ago (See American Elements September 18, 2007 press release) has finally been enacted taking effect as of January 1, 2008....

American Elements originally advised its customers and supply chain partners of an anticipated new 10 percent export tax on all rare earth metals from China; essentially the sole world producer. However, the new taxes are far higher than anticipated with rates as high as 25 percent. This is in addition to two prior 10 percent increases in 2007 for a total of 45 percent in approximately one year for those products....

The increase is in keeping with the Chinese government's stated intent to upwardly revalue and limit the export of China's significant recoverable rare earth reserves. This upward re-valuation has been accomplished through a mix of export tariffs and export quotas...

The number of producers and the limited export volume granted the remaining producers continues to be reduced quarterly by the Chinese government shrinking the global supply of new rare earth production outside of China at a time when world demand is rising..."

http://www.prweb.com/releases/chinese/exporttariff/prweb599041.htm