$SLIO ~ China is increasing taxes, export restrict
Post# of 12191
Posted On: 01/24/2014 9:10:39 AM
$SLIO ~ China is increasing taxes, export restrictions and imposing VAT penalties on all Chinese exporters of Rare Earth Oxides, Elements and Alloys.
China has closed many small REO mines and ceased issuing mining permits for the production of Rare Earth Oxides.
China has imposed strict production quotas and has begun enforcing environmental law on current producers of Rare Earth Oxides. High export taxes and restrictions on rare earth oxides and elements are resulting in the financial failure of all non?Chinese refineries, consequently expanding China’s monopoly up the value chain into metals and alloys.
How did this happen?
In 1986 the Chinese Government placed rare earths on a list of top secret National Priorities called Program?863. In 1992 the Premier Deng Xiaoping boldly stated to the world “The Middle East has oil, China has rare earths.”
By 1997 Mountain Pass, the only other significant REO producer outside of China, was forced to stop mining under increasing pricing pressure from China and environmental pressure from the State of California, ceasing all operations by 2002.
By 2003 China had acquired, closed and transplanted America’s most advanced rare earth magnetic facility into China (including its portfolio of patents).
In less than 30 years China made rare earths into a national monopoly.
With all these complications, it is clear that we need to increase our nations rare earth extraction rates as high as possible, if not to sustain ourselves, then because it is INCREDIBLY PROFITABLE.
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