China introduces new rare-earth rules

China said Thursday it will expand its rare-earths export-quota system and raise taxes on the minerals, which are used in high-tech applications like laser-guided weapons and hybrid car batteries, the Wall Street Journal reported. As of April 1, the tax on light rare-earth ores will be lifted to RMB60 (US$9.22) per ton, from a range of RMB0.40-30 (US$0.06-4.61) per ton, and the tax on heavy ores is being raised to RMB30 (US$4.61), also from a range of RMB0.40-30 per ton. The State Council and Commerce Ministry also said it will crack down on companies that resell export quotas, and won’t approve any new projects in rare-earth separation over the next five years. China, which supplies about 95% of the world’s rare-earth metals, has imposed a number of strict measures, including raising the threshold for entry, imposing higher environmental standards and cutting export quotas.