Chinese Commerce Ministry denies rare earth restriction+

BEIJING, Oct. 20 Kyodo -
The Chinese Commerce Ministry on Wednesday denied a recent report that it
intends to reduce export quotas for rare earth elements, for which China is the
world's largest producer, calling allegations to the contrary ''false'' and
''groundless.''
China will ''continue to supply rare earths to the world,'' the ministry said
in a faxed statement.
The China Daily on Tuesday had quoted a Commerce Ministry official as saying
that China will reduce export quotas for rare earth elements ''by 30 percent at
most'' in 2011 from year-earlier levels.
China, which accounts for around 95 percent of the global output of rare
earths, slashed export quotas by 72 percent in the second half of this year to
7,969 tons, the newspaper reported, citing Commerce Ministry data.
The reduction, which would follow a 40 percent decrease in 2010, may affect
Japanese manufacturers of hybrid vehicles, mobile phones and other high-tech
products.
The ministry statement Wednesday added that China will continue to take
restrictive measures on the exploitation, production and export of rare earths
in line with measures to protect depletable resources.
It said China will determine the export quota for next year based on ''the
output of rare earths, market demand and the requirements of sustainable
development.''
The ministry also refuted a New York Times report on Tuesday that quoted
anonymous rare earth industry officials as saying that China, having blocked
shipments of rare earths to Japan for the last month, has halted shipments of
those materials to the United States and Europe since Monday.
''We have not taken any limiting measures,'' a ministry official told Kyodo
News over the phone when asked about the report.
The New York Times report, released after the China Daily article, said Chinese
customs officials imposed the broader shipment restrictions Monday morning
after a few rare earth shipments to the West had been delayed in recent weeks.
==Kyodo