Monday, May 11, 2009

China to cap output of mineral resources in 2009

May 11, 2009 (China Knowledge) - China's Ministry of Land and Resources (MLR) announced in an online statement published on Wednesday that it would put a ceiling on the output of mineral resources such as tungsten, antimony and rare earth metals this year for the protection and reasonable use of these minerals amid the weak demand.

The nation's output of tungsten ore concentrate (that is, ore with tungsten trioxide content above 65%) will be restricted to 68,555 tons in 2009, while that of antimony ore will be limited to 90,180 tons this year, according to the statement.

The ministry it will also impose a ceiling of 82,320 tons on rare earth ore.

China, the largest antimony producer in the world, boasts 40.5% of the world's proven tungsten reserves and 52 million tons of proven rare earth reserves, which represents approximately 58% of the world's total.

The MLR said that it would cease accepting license applications for the mining of these resources until Jun. 30, 2010.

The ministry said it would strictly enforce the new restrictions, and that those who go against the rules will be penalized.

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