China to reduce rare earth export quotas.

China will further reduce quotas for rare earth exports by 30 percent at most next year to protect the precious metals from over-exploitation, said an official from the Ministry of Commerce. He added that the country is now facing the possibility that reserves of medium and heavy rare earths might run dry within 15 to 20 years if the current rate of production is maintained. Export quotas will continue to be axed in the first half of next year, said the source who declined to be named. China, which produces 95 percent of the world's supplies, has reduced 2010 production levels and slashed export quotas by 72 percent for the second half to 7,976 tons, according to ministry data. Rare earths, composed of 17 elements, are used in a number of high-tech processes ranging from wind turbines and hybrid cars to missiles.

CHINA.ORG