China tries to calm unease over rare earths curbs

BEIJING -- A Chinese official tried to calm unease about curbs on exports of rare earths used in clean energy products and superconductors, saying Thursday that sales will continue but must be limited to reduce damage to China's environment.

China produces nearly all the rare earths used in batteries for hybrid cars, mobile phones, superconductors, lightweight magnets and other high-tech products. Reports of a plan to reduce exports sparked concern about the impact on industry abroad.

Beijing will encourage sales of finished rare earths products but will limit exports of semi-finished goods, said Wang Caifeng, deputy director-general of the materials department of the Ministry of Industry and Information Technology.

Exports of raw ores already is banned, and said that will continue, Wang said at an industry conference.

Wang refused to confirm Chinese news reports that this year's exports will be cut to about 8% below 2008 levels and future exports will be capped at similar levels. She said a plan will be be issued later this year.

"China, as a responsible big country, will not go back and will not take the road of closing the door," Wang said.

But she said China has to limit output to protect its environment. She said production of one ton of rare earths produces 2,000 tons of mine tailings.

"China has made a big sacrifices for rare earths extraction," said Wang, who said she has spent her whole 30-year career overseeing the industry. "It has damaged our environmental resources."

Wang spoke at the Minor Metals & Rare Earths 2009 conference, cohosted by China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters and Metal Pages Ltd., a London-based metals trading and information company.

China accounts for 95% of global production and about 60% of consumption of rare earths, which include such metals as dysprosium, terbium, thulium, lutetium and yttrium, according to the U.S. Geological Survey.