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EU looks for alternative sources of raw materials.
Issued at 2010-12-01
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The European Commission intends to propose pursuing more bilateral trade agreements and investing in infrastructure in Africa as a means to increase alternative sources of rare earth metals, hoping to break China's dominance of the market for the strategic minerals. The measures are outlined in a strategy paper for raw materials by the commissioner for industry and entrepreneurship, Antonio Tajani.
The paper, to be presented to European Union member states and the European Parliament in the coming weeks, states that Europe must step up its efforts to find new sources of the materials, which are crucial for industry, especially in such sectors as automobiles and technology. Concerns were raised this year after Beijing cut its rare earths export quotas by 40% and temporarily halted shipments to Japan.
China accounts for 95% of world production, and demand for some rare earth metals is expected to increase more than twentyfold by 2030, said the commission, the Union's executive arm.
Concretely, the commission is seeking more access to rare earth metals through free trade agreements with Central and Latin America and pursuing trade negotiations with India, Canada, Russia and other countries in the region. But high tariffs imposed by some countries means that such imports are increasingly expensive.
The paper, to be presented to European Union member states and the European Parliament in the coming weeks, states that Europe must step up its efforts to find new sources of the materials, which are crucial for industry, especially in such sectors as automobiles and technology. Concerns were raised this year after Beijing cut its rare earths export quotas by 40% and temporarily halted shipments to Japan.
China accounts for 95% of world production, and demand for some rare earth metals is expected to increase more than twentyfold by 2030, said the commission, the Union's executive arm.
Concretely, the commission is seeking more access to rare earth metals through free trade agreements with Central and Latin America and pursuing trade negotiations with India, Canada, Russia and other countries in the region. But high tariffs imposed by some countries means that such imports are increasingly expensive.
Source: Aluplanet
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