China to remain top rare earth metals producer:By Michael...

China to remain top rare earth metals producer:
By Michael Taylor
LONDON | Mon Oct 18, 2010 11:28am EDT

LONDON (Reuters) ? China looks set to remain the leading producer of rare earth metals for years to come, with prices to double next year, top European producer AS Silmet of Estonia said on Monday.

China is the world?s biggest producer of rare earth metals, vital for the auto and electronics industries.

But concerns over global supplies have increased in recent months, after tensions rose between China and top consumer Japan, over imports.

"There are more than 200 rare earth projects outside of China," David O?Brock, chief executive at the privately-owned AS Silmet told Reuters. "There are a lot of very optimistic projects out there ? which may never be realized.

"If the Chinese leave the quotas at what they are today, I would guarantee that prices will at least double for next year."

China accounts for more than 90 percent of the world?s total production of rare earth, mining around 120,000 tonnes in 2008


http://www.reuters.com/article/idUSTRE69H34V20101018