‘Quietly’ issued minerals quota sign China is tightening supply

BEIJING has departed from established practice by issuing 2025 rare earth production quotas without any public disclosure, marking an unprecedented level of opacity in the strategically vital minerals sector, according to a report by Reuters.Industry sources cited by the newswire say authorities distributed the annual allocations last month behind closed doors, abandoning the traditional practice of formal government announcements. Companies receiving quotas were allegedly warned against revealing their allocated volumes, citing national security considerations.The shift represents a dramatic change from established protocol, where China’s industrial ministry routinely published quota details on government websites during the first quarter, said Reuters. Officials have remained silent when pressed for explanations regarding this policy reversal, the newswire added.As the world’s dominant supplier of these 17 specialised elements – crucial components in everything from smartphones to fighter jets – China’s production decisions ripple through global manufacturing chains. The twice-yearly quota announcements typically provide vital market intelligence for international industries.This year’s allocations faced unusual delays, partly attributed to contentious February proposals incorporating imported raw materials into the quota framework. The suggestion triggered fierce resistance from processors dependent on overseas ore supplies, who warned of potential supply shortages.Beijing has increasingly leveraged its rare earth dominance as a diplomatic weapon, imposing export curbs on key materials following Western trade restrictions. These measures have disrupted international automotive production lines and highlighted supply chain vulnerabilities.Previous year allocations totalled 270,000 tons for mining operations – reflecting sharply decelerated growth of just 5.9% versus the prior year’s 21.4% expansion. Processing quotas reached 254,000 tons with modest 4.2% growth.The government continues centralising control, limiting quota eligibility to merely two state enterprises from six previously authorised companies, said Reuters.The post ‘Quietly’ issued minerals quota sign China is tightening supply appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com