China Vows to Maintain Rare Mineral Supply


China vowed it would maintain the supply of rare minerals and said it may boost 2011 exports of the substances.

The Chinese Commerce Ministry denied reports that it would further reduce export quotas.

"China will continue to supply rare earth to the world," the ministry said in a fax to Bloomberg News.

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The minerals are used in products such as electronics, wind turbines and smart bombs. China accounts for more than 90% of world production.

The country spurred international trade tension when it cut its export quota for the second half of this year by 72%.

The Chinese government said it was simply trying to restrict environmental damage and stimulate value-added industries.

"To protect exhaustible resources and ensure sustainable development, China will continue to implement restrictions on the mining, production and export of rare earth," the Commerce Ministry said.