It is set to export 6,000 tonnes of rare earth chloride to a Japanese company
For the first time in seven years, India will begin the export of rare earth minerals, said government sources here on Thursday.
India is set to export about 6,000 tonnes of rare earth chloride to a Japanese company, marking its first entry into the rare earth exporters club, which is now totally dominated by China.
The decision to enter into such a partnership was taken during a summit meeting between Prime Minister Manmohan Singh and his Japanese counterpart, Naoto Kan, in Tokyo last year. Indian Rare Earths Limited, a public sector undertaking under the Nuclear Power Corporation of India Limited (NPCIL), will make the supplies of rare earth chloride to Toyota Tsusho.
The sources wanted the development to be seen in conjunction with the Indo-Japan Comprehensive Economic Cooperation Agreement (CEPA) signed on Wednesday and the decision to include Japanese Maritime Self Defence forces in the joint India-United States exercises for the second successive year.
The Indian move to enter the rare earth exports market comes at a time when China is cutting down export quotas to ensure that its industry moves up the value chain instead of simply selling raw material for value addition by other companies and countries. India had stopped producing rare earths for exports in 2004 but is now confident of exporting it at good prices due to firming up of prices in the international market.
India and Japan are now looking at the possibility of a joint venture between IREL and Toyota Tsusho though the issue of environmental clearances for the proposed plant in Orissa could be a major issue to be sorted out.
Information about the Indian decision came a day after Japan expressed interest in rare earth tie-ups with India on the occasion of signing of the CEPA in Tokyo. Sources said the IREL and the Toyota subsidiary were currently discussing the ration of stakes that both sides would hold in the joint venture. “This will take India-Japan ties to the truly strategic level,” said diplomatic sources.
Keywords: rare earth exports, minerals export
It is my opinion that india should conserve our natural resources for domestic use,and allow to export after value addition if necessary
I agree with the comments of Mr. Sriram and Mr.Phil. Instead of just hurrying to step in to Chinese shoe we should be a bit more cautious. China is no fool to clamp the supply of rare earths (that too for apparently silly reasons of territorial disputes), while risking their supply dominance. They should have realized it as an asset for the future which is now selling at a very low price comparatively.
We should have made a thourough estimation of our rare earths, and after ensuring that adequate stocks are available should we step in to export. I am not very sure this was done. Of course it is good that we are forging strategic ties with Japan, and if controlled healthily it will be a win-win situation for both, while not flaring up a tension with China.
As a neutral observer, I am wondering why policy makers allow this export to take place. Can they not learn from China, which as your correspondent says has banned exports so that using these ores, it can move up the value chain. China is already producing Lithium hydride batteries. Obviously describing the export material as rare-earths chloride does not reveal what the elements are. Possible elements could include yttrium is used in ceramics and in lasers, thulium is used in superconductors, and neodymium is used in lasers and in magnets, for instance. The country should set up plants to process these rare earths / rare metals chlorides and create jobs for at least a few of the millions who are unemployed, and lift them out of their misery. India if it is to emerge and take its place as a world power must focus on in-country manufacturing -- this export harkens back to the days when the colonial masters shipped out cotton for processing in UK mills. The lessons of history seems not to have been learnt... sad!
Given the fact that China is reducing its export and US does not want to use its resources (mainly uses import from China while stockpiling theirs) - all with a futuristic eye that the these are limited and rare commodity (something like our spectrum) I guess we should be cautious too, not go to 19th and 20th century..........where we exported all our precious raw materials and paid multiple times to get the finished ones - this is not smartness, its common sense!
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