China to impose export controls on strategic minerals on Sept 15

FE Team | Published: August 17, 2024 21:05:09

BEIJING, Aug 17 (Reuters): China will impose export limits on antimony and related elements in the name of national security, its commerce ministry said on Thursday, Beijing's latest move to restrict shipments of critical minerals in which it is the dominant supplier.
China accounted last year for 48 per cent of global mined output of antimony, a strategic metal used in military applications such as ammunition, infrared missiles, nuclear weapons and night vision goggles, as well as in batteries and photovoltaic equipment.
The restrictions are imposed "in order to safeguard national security and interests, and fulfil international obligations such as non-proliferation", the ministry said in a statement.
At a regular weekly briefing on Thursday, the ministry said the curbs are not directed at any specific country or region.
"It's a sign of the times," said Christopher Ecclestone, a principal and mining strategist at Hallgarten & Company in London.
"The military uses of Sb (antimony) are now the tail that wags the dog. Everyone needs it for armaments so it is better to hang onto it than sell it," he said. "This will put a real squeeze on the US and European militaries."
The limits, effective from Sept. 15, apply to six kinds of antimony-related products including antimony ore, antimony metals and antimony oxide, the ministry said in a statement. The rules also ban the export of gold antimony smelting and separation technology without permission.
Exporters of affected products must apply for export licences for dual-use items and technologies - those with potential military as well as civil applications - it said.
The US and other countries are scrambling to ease their reliance on China for key materials, setting out policies and support packages for their critical minerals sectors, including rare earths.
In an April research note, analysts at China Securities said increasing demand for arms and ammunition due to wars and geopolitical tensions was likely to see tightening control and stockpiling of antimony ore.
WIDENING CURBS
China's latest curbs follow a wave of such restrictions introduced since last year.
In December, China banned the export of technology to make rare earth magnets, which came on top of a ban already in place on exporting technology to extract and separate the critical materials.
Beijing has also tightened exports of some graphite products, and imposed restrictions on exports of gallium and germanium products widely used in the semiconductor industry. Prices of antimony surged to record highs this year, fuelled by tight supply and growing demand, especially from the photovoltaic sector, where the metal is used to improve the performance of solar cells.
That has helped push up the share prices of Chinese producers including Hunan Gold, Tibet Huayu Mining and Guangxi Huaxi Non-Ferrous by between 66 per cent and 93 per cent so far in 2024.