Removal of the Chinese Rare Earth's export duties a non-event
The confusion about the Chinese stopping the export duties for the REE’s should not be seen as a negative for the non- Chinese producers or potential producers.
The Chinese are more active now than they have been for some time (approximately 3 years) looking for new supplies of REE feed stock outside of China – for example the interest Commerce Resources is receiving again, which Commerce has not really seen since 2012, which was just before President Xi came into power (November 2012).
It should be noted that the export duties did have the real reason to “encourage” foreign companies (whether they are REE processors or manufacturers using the REE’s) to set up their facilities in China - besides they had made everyone else in the world paying more for the REE’s. And both has worked very well for the Chinese.
For a very specific example, Solvay is the world’s largest REE processor and producer, but this has nothing to do with what they do in France – in fact their facility at La Rochelle is only operating at ab out 25% capacity right now. Solvay is the world’s largest REE processor because they have two REE processors in China, so that they could access the cheaper domestic Chinese feed stock.
That way, the Chinese also get what they were really looking for which is more jobs for Chinese citizens.
This removal of the export duties should really be seen as a non-event.
(From a conversation with Chris Grove, President of Commerce Resources.) |
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