China may cut rare earth exports

China’s Ministry of Commerce may further cut quotas for rare earth exports by up to 30% next year to prevent over-exploitation of the resource, state media reported, citing a ministry official. China has lowered 2010 output levels and export quotas by 72% for the second half of this year to 7,976 tons, the ministry said. China currently produces 97% of the world’s rare earth metals. "Strategic, environmental and economic considerations mean that the country can’t afford to continue shouldering the burden of supplying the world," said Chao Ning, a commerce ministry official. While China has claimed that the cut in rare earth exports is due to environmental reasons, other nations are concerned that Beijing is exploiting its monopolistic position on the commodity.