China to tighten grip on rare earth mining for non-state firms – MINING.com

China plans to prohibit non-state companies from mining rare earths, further tightening its control over a strategic sector that has emerged as a battleground in its trade war with the US.

The government said only large state-owned groups can mine, smelt or separate the minerals and proposed banning private firms from the activities, according to draft rules issued by the Ministry of Industry and Information Technology on Wednesday.

Rare-earth companies will need to compile and submit production data to the MIIT every month, according to the document. The public can provide feedback on the plan until March 21, it added.  

The proposal came after the country banned the exports of several materials including germanium and gallium in a tit-for-tat move to counter the US government’s technology curbs. Beijing also imposed new export control on tungsten and other critical metals used in electronic and defense industries in its retaliation to US President Donald Trump’s tariffs on Chinese goods.

Rare earths, a cluster of 17 elements used in everything from wind turbines to military hardware and electric vehicles, have been a feature of China’s previous trade disputes. The Chinese government in 2023 halted the export of a range of technologies associated with processing the elements, making it harder for the US and its allies to bolster supplies of the materials. 

China is the world’s largest producer of rare earths, accounting for around 70% of global production. It also dominates the processing of these elements, giving it significant leverage over the market.