China’s germanium, gallium ban could cost the US $3.4 billion
According to the USGS, gallium prices could increase by more than 150% and germanium prices by 26% in the event of a total ban.
The China Post reports two of China’s largest rare earths producers Rising Nonferrous Metals Share Co. Ltd. and Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech Co. Ltd. — the listed arms of state-owned companies — said they signed a deal this week to cooperate “extensively” in the sector.
China’s tightening grip on the market became clear last week when Hong Kong customs data showed rare earth ores, metals and compounds exports fell 11% over a single month while at the same time the value of exports for the first five months of 2011 surged 242%. News out on Friday concerning delays for a rare earth refinery in Malaysia that would have supplied more some 39% of the elements outside China is expected to put further pressure on prices.
They will work together on capital, processing and technological uses of the 17 elements critical to making everything from iPods to electric cars and missiles, according to statements to the Shanghai stock exchange.
Last week MINING.com reported how certain rare earth prices have skyrocketed:
Prices of the certain rare earths used in energy saving lightbulbs, lasers, nuclear reactors, magnets for hybrid cars and plasma televisions more than doubled in the past two weeks as China, responsible for upwards of 95% of world supply, further tightens control of mining, trading and exports, research house Industrial Minerals said over the weekend.
