The USA's largest rare earth producer Molycorp (NYSE:MCP) is mounting a credible challenge to Chinese rare earth dominance by dramatically scaling up output and potentially increasing its global market share to 30% from 4% at present.
Baja Mining dropped by almost a third on Friday after announcing class action proceedings seeking $260 million in damages for misrepresenting the true state of affairs at its Boleo project in Mexcio since 2010. It is now worth a paltry $18.7 million on the Toronto big board. During the heady days of 2007 Baja Mining was valued at $836 million.
The volume of rare earth minerals legally exported from China for the first half of 2012 plunged by 42.7% year-on-year to hit 4,908 tons according to statistics from China's customs authorities.
Police in the southern Chinese province of Guangdong announced on Tuesday that they have shut down nine rare earth mines operating illegally in Longchuan county over the past six months.
The World Trade Organization will investigate China's quotas and tariffs on rare earth minerals following prompting from the US, EU and Japan, who allege the export restrictions are in contravention of international trade regulations.
The Chinese government has halved the number of rare earth mining rights in the country pulling 65 permits in all, according to a report by ChinaDaily USA.
Recent discoveries of rare earth minerals at the bottom of the Pacific Ocean could break China's existing stranglehold on supply of the key raw materials.
