MINEX Forum

Tag: China

  • EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    The European Union is working with the United States and other G7 partners to coordinate a response to China’s expanded export controls on rare earth minerals, senior EU trade officials said on Tuesday.

    Beijing, which dominates global production and refining of rare earths, tightened restrictions last week, adding more elements and refining technologies to its control list, along with new scrutiny for semiconductor-related exports. The move comes ahead of planned talks between Presidents Donald Trump and Xi Jinping, raising fresh concerns about supply security for key Western industries.

    European Trade Commissioner Maros Sefcovic described China’s measures as “unjustified” and said EU ministers gathered in Denmark had identified the issue as a “critical concern.”

    Previous Chinese export restrictions earlier this year caused widespread supply shortages, particularly for automakers, before temporary relief came through emergency supply agreements between Europe and the US.

    Sefcovic confirmed that G7 finance ministers are expected to discuss coordinated options on Wednesday.

    “We brainstormed yesterday that it would be advisable after this first discussion to have a G7 video call pretty soon,” he said, adding that he had already spoken with US Commerce Secretary Howard Lutnick on the issue.

    Sefcovic is also scheduled to hold talks with his Chinese counterpart early next week.

    Danish Foreign Minister Lars Rasmussen emphasized the need for a united and firm EU response, calling for solidarity with Washington.

    “We must be tough but realistic. This is an area of common interest with our friends in the US. If we stand together, we can better pressure China to act fairly,” Rasmussen said.

    While Trump’s response included a threat of 100% tariffs on Chinese imports, triggering a brief Wall Street sell-off, Rasmussen cautioned against escalation, advocating instead for “frank and open discussions” with Beijing.

    Sefcovic added that coordination among G7 nations could include joint efforts to diversify supply chains, accelerating critical mineral extraction and processing projects outside China.

    “Of course these projects take time,” he said, “but with this signal from China, it’s clear we must focus on speeding them up as much as possible.”

  • China’s Rare Earth Export Curbs Threaten to Disrupt Europe’s Auto Industry, Italian Lobby Warns

    China’s Rare Earth Export Curbs Threaten to Disrupt Europe’s Auto Industry, Italian Lobby Warns

    New Chinese restrictions on rare earth metal exports could severely impact Europe’s automotive industry, warned Roberto Vavassori, chairman of Italy’s auto parts association ANFIA, during the ForumAutoMotive conference in Milan on Tuesday.

    Despite a July agreement intended to streamline shipments to Europe, China has continued to maintain tight control over rare earth exports, recently expanding its export curbs even further. The country currently refines and processes the majority of the world’s rare earths, materials essential to key sectors including automotive manufacturing, semiconductors, and defence.

    Vavassori noted that while European manufacturers had so far managed to sustain production despite previous supply cuts, reserves of rare earth metals are now nearly exhausted.

    “That reserves’ buffer is not there anymore,” he said, warning that further disruptions could quickly ripple through Europe’s automotive supply chain.

    Rare earth elements are critical for producing electric motors and other advanced vehicle components, making them indispensable to Europe’s electric vehicle ambitions.

    Although the global rare earth industry is relatively small — valued at less than $5 billion — Vavassori emphasized that its strategic importance far outweighs its market size.

    “This small industry is capable of slowing down the entire global auto sector,” he cautioned.

  • U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    Britain is preparing to sign a landmark critical minerals partnership with Greenland, a move aimed at securing access to the Arctic island’s vast reserves of rare earths and reducing reliance on Chinese supply chains. Sources familiar with the talks told POLITICO that the agreement could be announced during Prime Minister Keir Starmer’s visit to Copenhagen this week for the European Political Community summit.

    Greenland, a self-ruling Danish territory, hosts 40 of the 50 minerals the United States deems essential to national security, including uranium and graphite. These resources are increasingly vital for global supply chains powering electric vehicles, renewable energy, and advanced technologies.

    The U.K. Department for Business and Trade stressed that securing critical minerals is central to Britain’s industrial strategy, growth, and clean energy transition. Trade Minister Chris Bryant hinted earlier this week that new trade talks were imminent, without naming the country involved.

    Analysts caution that while Greenland’s mineral wealth presents an opportunity, the financial and environmental costs of extraction remain high. Environmental standards and indigenous community participation will be key to securing local support. Greenland has previously revoked mining licenses over radioactive waste concerns, underscoring the political and ecological sensitivities.

    The deal also carries political implications. Greenland’s revenues from mining could reduce its reliance on Denmark’s annual block grant, potentially strengthening its independence. However, experts warn that London must coordinate with Denmark, Nordic states, and the EU to avoid tensions, particularly as Brussels already signed a minerals partnership with Greenland in 2023.

    Even if secured, extraction is only part of the challenge. Most refining of rare earths and critical minerals still occurs in China. Without parallel investment in processing capacity elsewhere, Europe and the U.K. risk remaining tied to Chinese supply chains despite new mining agreements.

  • China Tightens Grip on Tajikistan’s Antimony Industry

    China Tightens Grip on Tajikistan’s Antimony Industry

    In Tajikistan’s mountainous heartland, the Soviet-era Saritag antimony mine stands testament to China’s growing influence in Central Asia. Run by the joint venture Talco Gold, a collaboration between Tajik and Chinese companies, the mine produces over 5,000 tonnes of antimony concentrate daily, crucial for many industrial applications. The ore is crushed, ground in large drums, and then separated from the metal using chemical reagents before being dried and bagged as 30% pure antimony. This large-scale operation was made possible by a significant Chinese investment in 2022, which is now being followed by the construction of a new purification plant.

    Pictures of Tajikistan’s long-time President Emomali Rakhmon coexist with portraits of Chinese leader Xi Jinping on posters juxtaposing the country’s past with its present economic reality. While remnants of the Soviet era remain, China has overtaken Russia as the dominant power in the region’s crucial mining sector.

    The full potential of the mine is yet to be unlocked. China’s ambitious $359 million project aims to build a state-of-the-art purification plant on the site, allowing for even greater control over the antimony production chain.

    The Chinese investment, pouring in, signals a strategic move to secure access to vital resources and cement political ties. While offering much-needed economic boost to Tajikistan, it raises concerns about resource dependence and potential environmental consequences.

    This narrative paints a picture of delicate balance: economic prosperity coupled with increasing reliance on a single partner, leaving Tajikistan to navigate the complex landscape of China’s expanding geopolitical footprint in Central Asia.

  • China Says Rare Earths “Not a Problem” for Europe Amid Export Licensing Concerns

    China Says Rare Earths “Not a Problem” for Europe Amid Export Licensing Concerns

    China’s Foreign Minister Wang Yi attempted to calm European fears over rare earth export restrictions during a visit to Berlin on Thursday, insisting that “rare earths have not been, are not, and will not be a problem” between China and Europe. His remarks come amid growing anxiety in the EU over Beijing’s tightening grip on critical mineral exports.

    Speaking alongside German Foreign Minister Johann Wadephul, Wang emphasized that China’s new licensing regime, which began in April, is standard practice for controlling dual-use goods, not an attempt to disrupt supply. “If legal applications are submitted, Europe’s and Germany’s normal needs can be met,” he said.

    The comments were made during Wang’s European tour, which is aimed at laying the groundwork for the upcoming EU-China summit later this month. The Chinese diplomat had previously met EU foreign policy chief Kaja Kallas in Brussels, who also pressed for an end to export curbs.

    Germany, one of the EU’s leading industrial powers and heavily reliant on critical materials, expressed unease over the export rules. “The restrictions are causing great concern and damaging China’s image as a reliable trade partner,” Wadephul said, though he noted efforts were underway to find “sustainable joint solutions” and ease tensions.

    Beijing controls over 90% of global rare earth processing capacity, making its policy decisions critical to industries ranging from electric vehicles to consumer electronics. In April, China imposed a requirement for exporters to obtain special licenses — a move seen by many as retaliation for escalating trade pressures, particularly with the United States.

    When asked if a deal on the export restrictions could be reached before the EU-China summit, Wang reiterated that the issue should not be viewed as a bilateral dispute. He also pointed to the Chinese Ministry of Commerce’s fast-track procedure to expedite applications and ease concerns.

    Beyond rare earths, the two ministers also discussed global flashpoints, including Russia’s invasion of Ukraine, tensions over Taiwan, and the Middle East crisis. Wadephul added, “We believe China can play a constructive role in relation to Iran.”

  • Kazakhstan and China Deepen Nuclear and Trade Ties with $25 Billion Deal

    Kazakhstan and China Deepen Nuclear and Trade Ties with $25 Billion Deal

    Kazakhstan and China are set to ink 60 agreements worth up to $25 billion as part of a sweeping strategic partnership, solidified during the China–Central Asia Industrial and Investment Cooperation Forum held in Astana. The deals mark a new phase of cooperation, particularly in nuclear energy, infrastructure, and mineral supply chains.

    At the center of the new partnership is China National Nuclear Corporation (CNNC), which Kazakhstan has now officially designated as a strategic partner for its upcoming nuclear power plant projects. The two sides are also launching joint research into transboundary uranium ore belts, reinforcing Kazakhstan’s role as a global uranium powerhouse and a key nuclear fuel supplier to China.

    “Kazakhstan considers CNNC a reliable strategic partner,” President Kassym-Jomart Tokayev stated, highlighting CNNC’s global track record and Kazakhstan’s own dominance in uranium supply. In 2022, the country supplied 25% of U.S. uranium imports, more than twice that of Russia.

    Bilateral trade has also surged, hitting a record $44 billion in 2024, with Kazakhstan’s strategic location and mineral wealth serving as a cornerstone of China’s Belt and Road Initiative. The forum spotlighted plans to upgrade logistics corridors, expand border infrastructure, and simplify customs procedures, all part of Beijing’s wider ambition to make Kazakhstan Central Asia’s premier transit and supply hub.

    The announcement comes at a pivotal time. China’s push to build 150 nuclear reactors by 2035 — 27 of which are already under construction — is setting a new global pace in nuclear energy. Its domestic capacity, innovation leadership, and fourth-generation reactor tech, such as the recently launched Shidaowan-1 plant, are positioning Beijing to dominate nuclear exports just as it has with electric vehicles and batteries.

    This partnership could see Kazakhstan, which currently lacks any nuclear energy production, transform into a key node in China’s—and the world’s—nuclear future. With both countries leveraging uranium-rich geology and deepening geopolitical ties, this move further sidelines the West, especially the U.S., which remains heavily dependent on foreign uranium despite efforts to revive its own nuclear sector.

  • EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    The EU must prioritize Environmental, Social, and Governance (ESG) principles in its dealings with Central Asia to secure its access to crucial raw materials, commentators warn.

    The bloc arrived in Samarkand this April with a hefty €13.2 billion Global Gateway package, signaling a desire to move beyond merely buying raw materials from the region. A significant portion, €2.5 billion, is earmarked for new mining and processing projects in Kazakhstan, Uzbekistan, and beyond. This drive is born out of necessity: the EU still relies entirely on China for its heavy rare-earth imports and faces the growing risk of vulnerability.

    While geographically late to the game, Europe has a unique advantage: a reputation for robust ESG practices. Local executives cite European partners as “a sign of quality” due to their unwavering adherence to these standards, something often lacking in Chinese or Russian counterparts. However, this edge relies on Brussels consistently embedding ESG into every euro invested. This means robust monitoring and auditing of remediation plans, transparent royalty structures, and genuine upfront consultation with local communities.

    The EU’s Critical Raw Materials Act (CRMA) sets ambitious goals: attaining 10 percent mining, 40 percent processing, and 25 percent recycling of Europe’s annual CRM demand domestically or in trusted partner states by 2030.

    Realising these goals in Central Asia necessitates investment in sustainable technologies. This includes financing water-efficient processing plants, closed-loop waste systems, and solar-powered smelters, rather than simply opening more exploitative mines.

    The EU’s efforts are beginning to take shape, with the spotlight falling on graphite. Kazakhstan’s Sarytogan deposit has been placed on the EU Commission’s list of “strategic projects” eligible for expedited permits and loan guarantees under the CRMA. Meanwhile, the European Bank for Reconstruction and Development has taken a significant stake in the mine operator, marking a direct investment in the region’s CRM sector. The EU is now actively seeking downstream investors to refine indigenous graphite into anode-grade product, capturing added value that historically flowed to Chinese refiners.

    Lithium development is following a similar trajectory. A partnership between HMS Bergbau and Kazakhstan’s Creada Corporation aims to unlock the potential of Kazakh spodumene through extraction, processing, and refining into battery-ready lithium hydroxide. This would be a direct response to the EU’s new battery-passport regulations, which require materials of a certain purity.

    However, Europe faces a formidable competitor: China. The PRC Mineral Resources Law mandates environmental remediation planning before mining commences, setting a new baseline for responsible resource extraction. While welcomed, the application details remain vague, lacking guarantees on local community engagement and enforcement mechanisms, potentially creating loopholes for exploitation.

    Adding to the pressure, Chinese capital is expanding downstream. East Hope Group’s landmark $12 billion investment in Kazakh non-ferrous metals signifies a vertical integration approach—from mining and smelting to fabrication and renewable power generation. This $12 billion vertical integration project in Kazakhstan showcases China’s willingness to build a fully controllable supply chain.

    Europe must act strategically to counter these challenges.

    Firstly, financial aid should be contingent on stringent ESG benchmarks. EU financing must go hand-in-hand with clear, enforceable standards – ISO-compliant tailings dams, methane monitoring, gender-balanced workforce plans, and robust penalties for non-compliance.

    Secondly, the EU should focus on fostering value-adding industries beyond mining. This means investing in processing plants and recycling facilities, not just mines. By creating domestic processing hubs for cathode powders or rare-earth magnets, the CRMA’s 40 percent processing target can be achieved, generating jobs, technology transfer, and increased tax revenue for beneficiary countries.

    Finally, the EU must simplify visa requirements for Central Asian technical personnel. A targeted visa-facilitation agreement could allow them to train in Europe and return, strengthening the region’s skilled workforce.

    Securing a stable and sustainable supply of raw materials is a critical challenge for the EU. While China’s economic clout is undeniable, Europe has the opportunity to win this race by leveraging its commitment to ESG principles and building a truly sustainable, transparent, and trust-based partnership with Central Asia.

    Time is of the essence. The next 18 months, before China’s revised mining law takes full effect and East Hope’s megaproject begins construction, provide a crucial window for the EU to demonstrate its commitment to ESG beyond rhetoric. The stakes are high, as the fate of Europe’s essential raw materials supply hangs in the balance.

  • China Rebukes G7 and EU Over Rare Earth Criticism and Trade Policy Tensions

    China Rebukes G7 and EU Over Rare Earth Criticism and Trade Policy Tensions

    China has strongly condemned the Group of Seven (G7) nations and European Commission President Ursula von der Leyen for what it described as interference in its internal affairs and unfair criticism of its economic practices. The backlash follows a G7 statement issued after the summit in Alberta, where Canadian Prime Minister Mark Carney urged China to curb “market distortions and harmful overcapacity.”

    Chinese Foreign Ministry spokesperson Guo Jiakun labeled the remarks “irresponsible” and “manipulative,” asserting that accusations of overcapacity were a pretext for trade protectionism. He also rejected claims that China’s rare earth dominance was being weaponized, calling such allegations a smear on China’s industrial policy.

    Von der Leyen had warned of a new “China Shock,” accusing Beijing of flooding global markets with subsidized goods and leveraging its control over critical materials to undermine competitors. Her comments coincided with the EU’s decision to postpone an economic dialogue with China due to stalled trade progress.

    Guo defended China’s subsidy policies as fair and transparent, and called for cooperation with the EU to foster a non-discriminatory business environment. Von der Leyen is expected to visit China for a summit next month.

  • Uzbekistan and China Advance Talks on Establishing SCO Development Bank

    Uzbekistan and China Advance Talks on Establishing SCO Development Bank

    Representatives from the Ministry of Economy and Finance of Uzbekistan and China’s Ministry of Finance convened virtually to discuss the creation of a Shanghai Cooperation Organization (SCO) Development Bank, according to Trend.

    The meeting brought together Shukhrat Matkarimov, Deputy Director of Uzbekistan’s Department of International Relations, and Zhang Bo, Deputy General Director of China’s Department of International Economic and Financial Cooperation. The two sides conducted an in-depth review of the bank’s proposed structure, governance framework, operational focus, and funding strategies.

    Uzbekistan emphasized the strategic importance of the initiative, viewing the future SCO Development Bank as a catalyst for deepening investment cooperation, financing regional infrastructure projects, and accelerating sustainable economic development across member states.

    Both parties agreed to continue technical consultations at the ministerial and expert levels to refine the bank’s framework and move the project forward.

    This development comes amid deepening economic ties between Uzbekistan and China. Bilateral trade exceeded $13 billion last year, with both governments expressing strong confidence in reaching the $20 billion trade target set by their national leaders.

  • European Tungsten Prices Reach Highest Level Since 2013 Amid Chinese Export Curbs

    European Tungsten Prices Reach Highest Level Since 2013 Amid Chinese Export Curbs

    European tungsten prices have surged to their highest point since 2013, driven by China’s tightening restrictions on critical mineral exports. The price of ammonium paratungstate (APT)—a vital intermediate in tungsten metal production—has reached $400 per metric ton unit (mtu) on the European spot market, marking an 18% increase since February, according to Reuters.

    The spike follows China’s recent export curbs and quota reductions on key strategic metals, including tungsten, tellurium, molybdenum, bismuth, and indium. These measures, imposed in retaliation to US tariffs earlier this year, have intensified global supply concerns.

    China dominates global tungsten production, accounting for over 80% of the 81,000 tons produced worldwide last year, according to the US Geological Survey (USGS). Tungsten’s exceptional properties—such as its highest melting point of any element, extreme hardness, and excellent electrical and thermal conductivity—make it indispensable across various industries. Initially popularized in incandescent light bulbs, tungsten now underpins sectors ranging from aerospace and semiconductors to defense and industrial drilling.

    Tungsten carbide, second only to diamond in hardness, is crucial for metalworking tools and industrial drills, while tungsten crucibles facilitate the melting of other high-temperature materials. In the defense sector, tungsten is used for “penetrators,” armor-piercing projectiles currently in high demand amid the ongoing conflict in Ukraine.

    China’s Tightening Grip on Exports
    The global tungsten scarcity has been exacerbated by China’s export restrictions. The country’s first tungsten ore mining quota for 2024 was set at 58,000 tons—a 6.5% decrease from the previous year.

    “Since the Chinese export ban was announced, there has been an over-reliance on scrap supplies, but now those are running thin, and there’s growing panic over the inability to secure new primary tungsten material,” said Oliver Friesen, CEO of Guardian Metal Resources.

    The stakes are especially high for the United States, which ceased commercial tungsten mining in 2015 and remains heavily reliant on imports. A looming 2027 deadline mandates the US military to eliminate purchases of tungsten mined or processed in China or Russia—the latter being the world’s third-largest producer.

    North American Efforts to Secure Supply
    In response, Canada’s Almonty Industries recently announced an offtake agreement to provide tungsten oxide exclusively for US defense applications. The company operates tungsten mines in Spain, Portugal, and South Korea.

    “Almonty can produce enough tungsten for US/EU/Korea defense demand but not enough for the entire US/EU/Korea market—defense and civilian combined,” Almonty’s CEO Lewis Black stated. Shares of Almonty rose 4.6% in Toronto following the announcement, giving the company a market capitalization of C$688 million ($492 million).

    “Tungsten is a small market… But the industries that depend on it are exponentially bigger, which is why it is on everyone’s critical mineral list,” Reuters columnist Andy Home noted.