China denies planning to cut rare earths exports

BEIJING — China's Commerce Ministry on Wednesday denied a news report that Beijing plans to reduce exports of rare earths — exotic metals used in high-tech products — by up to 30 percent next year. The state-run newspaper China Daily on Tuesday cited an unidentified Commerce official as disclosing the planned cut. "The report is completely false," the ministry said in a one-sentence statement carried by the official Xinhua News Agency. It gave no details of next year's export plans. Beijing said last year it would cut rare earths exports to conserve supplies and curb environmental damage from mining. Those plans are being closely watched by industrial customers in Japan, the United States and Europe that need them to produce mobile phones, batteries and other products. China has about 30 percent of global rare earths deposits but accounts for about 97 percent of production. The United States, Canada and Australia have rare earths but stopped mining them in the 1990s as lower-cost Chinese supplies became available. Japanese companies say Beijing has blocked rare earths shipments to Japan since Sept. 21 after a Chinese fishing boat captain was detained near disputed islands. The captain was later released but Japanese authorities say supplies have yet to resume. Chinese government spokespeople have denied there is an official ban on shipments to Japan. Japan's trade minister said Tuesday that Tokyo was trying to arrange a meeting with Chinese authorities to break the deadlock. China's rare earths export quota this year is 24,280 tons, down from 31,310 tons in 2009, according to the Commerce Ministry. An official cited by the China Daily said China's rare earths reserves would last 15 to 20 years at current production levels and the country might need to import supplies after that. China's plan to cut exports has prompted mining companies in the United States and Canada to launch efforts to resume production there. The recent disruption of Chinese supplies has shaken Japan, which is considering becoming a rare earth recycling center and is working with Mongolia to develop new rare earth mines. — AP