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Q: How is it China controls over 90% of the world's rare earth minerals??
this part of the planet was created 1 million years before the rest of the planet, hence the 60 zillion years of history compared to our 60 years of history
China does NOT control 90% of the world's rare earth minerals. They "control" about 37% of the world's deposits.
What you mean is why does China PRODUCE over 90% of the world's rare Earth minerals. The answer is quite simple. China undercut every other company in the market because they luckily found a sizable deposit in an existing iron mine in Inner Mongolia, so it just happens to be a by-product of their operation. Of course, the labor cost of a miner in Inner Mongolia is dirt cheap (hahaha) so China was able to flood the market with extremely cheap RE minerals.
Don't worry, there are tons of rare earth deposits everywhere. The US has major sources in Idaho and California, but right now, it's much cheaper to simply buy it at the bargin Chinese price. Contrary to what some reports say, China doesn't have a monopoly where they own all of the RE elements in the world. They just cornered the market by selling 10 times cheaper than everyone else. Sooner or later the deposit will run dry, China will say "oh crap" and then probably have to buy RE minerals from Brazil or India (also suppliers).
thedude:
I was going to say something similar, but you beat me to it, and explained it better than I would have anyway. So true.
Shining_brow:
And, like oil, some nations found it better to buy at a cheap price now while holding onto their own stocks, so that later they CAN have a monopoly - and drive prices through the roof. Once again, China has only thought extremely short term, and will regret it later...
juanisaac:
You gave a good and concise explanation. The Japanese want to mine some rare-earth mineral deposits near their ocean beds. Other countries are also opening up old mines to get access to them. This time is not so much cost that matter, but national security.
Duh. They spent the most money to buy up the mines.
Duh. They spent the most money to buy up the mines.
China only controls over 90% of the world's "accessible" rare earth minerals. Since these are needed for advanced technologies like LCD screens, I imagine other countries will start to invest in their own deposits as well. For now, China has the monopoly unless the WTO steps in (which I think they shouldn't).
