The Significance of Rare Earths in China’s Economy
The red hills of southern China conceal a powerful resource: an immense reserve of rare earths, tirelessly exploited by a strategic industry operating under strict surveillance and secrecy.
The hills of Jiangxi province house the majority of China’s rare earths, integral to a wide array of products from smartphones to guided missile technology.
In November, AFP journalists visited the region with unnamed guides and companies refusing interviews. The processing sites surged from 117 in 2010 to 2,057 in 2017, according to the United States Geological Survey (USGS).
Currently, the USGS records 3,085 points across China, predominantly in Jiangxi’s hills.
Intense Mining Activity and Strategic Importance
One mine operates almost continuously, according to local residents. “It runs 24 hours a day, seven days a week,” said a villager from Banshi.
This intense mining activity stems from decades of Beijing’s efforts to bolster its position in this strategic sector.
China recently secured a temporary truce in its trade war with the U.S., easing export controls on rare earths.
Western Concerns and Diversification Efforts
Washington now seeks alternatives to reduce its supply chain dependence on China, though experts warn this will take years.
A sign of Western concern is the European Union’s measures to lessen its reliance on China for these critical raw materials.
The EU announced nearly €3 billion (€3.5 billion) to support mining, refining, and recycling projects and proposed a European supply center.
“Heavy” Rare Earths: China’s Strategic Assets
“Middle East has oil; China has rare earths,” declared Deng Xiaoping in 1992. Since then, China has capitalized on its natural resources to dominate rare earth processing and innovation.
China’s rare earth industry is centered around two hubs. One, Bayan Obo in Inner Mongolia, is rich in “light” rare earths used in magnets and everyday products. The other, near Ganzhou in Jiangxi province, specializes in “heavy” rare earths, more challenging to extract but highly valuable for heat-resistant magnets, fighter jet engines, guided missile systems, and lasers.
The steep hills around Ganzhou host the world’s largest extraction and processing operations of strategic “heavy” elements like dysprosium, thulium, and terbium.
Formation and Extraction of Rare Earths
Heavy rare earths form over millions of years as rain erodes igneous rocks, decomposes them, and concentrates the elements near the surface.
Jiangxi’s abundant rainfall and natural rocks make it an ideal location for these chemical elements’ formation.
Criticism of Destructive Extraction Methods
Authorities have criticized destructive extraction methods and fought against previous “chaotic” practices.
“Moving mountains,” a practice where large areas are mined, was deemed “irreparably damaging” by China’s industrial and technological regulator in 2015.
Over time, unlicensed mining has significantly decreased. Rural areas display signs warning against illegal rare earth extraction, while others offer rewards for reporting such actions.
The industry has consolidated into two major state-owned enterprises.
Consolidation and State-Owned Enterprises
In Ganzhou’s “Rare Earth Avenue,” the headquarters of one such titan, China Rare Earth Group, is under construction.
However, Jiangxi’s hills still bear scars from past mining practices, with red soil veins exposed amidst vegetation attempting to regrow.
Key Questions and Answers
- What are rare earths? Rare earths are a group of 17 chemical elements characterized by their similar properties, including magnetic, luminescent, and electrochemical characteristics.
- Why are rare earths important to China? Rare earths are crucial to numerous industries, from electronics and clean energy technologies to defense systems. China’s dominance in rare earth production gives it a strategic advantage.
- What are “light” and “heavy” rare earths? Light rare earths, such as neodymium and dysprosium, are used in magnets for wind turbines and electric vehicles. Heavy rare earths, like thulium and yttrium, are used in high-tech applications such as guided missile systems and lasers.
- Why is Jiangxi significant for rare earth mining? Jiangxi’s geography, with its abundant rainfall and igneous rocks, makes it an ideal location for the formation of rare earth elements.
- What are the concerns regarding rare earth extraction in China? Critics point to destructive mining practices, such as “moving mountains,” which cause irreparable damage to the environment.
