U.S. rare earth mine resumes active mining

IDG News Service - A major U.S. mine for rare earth metals has gone back into operation, adding a much needed source to offset China's control of the unique group of materials necessary to build tech gadgets like smart phones and laptops.

Colorado-based Molycorp resumed active mining of the rare earth metal facility at Mountain Pass, California last week. The site had been shutdown in 2002 amid environmental concerns and the low costs for rare earth metals provided by mining operations based in China.

Rare earths encompass a group of 17 metals that are vital to the miniaturizing of electronic components such as magnets and capacitors. China mines more than 90% of the world's current demand for them, according to analysts. But the country has been tightening control of its supplies, causing concerns among countries like the U.S. and Japan, which import rare earth metals.

Those fears came into the spotlight when in September media outlets reported that China had stopped exporting rare earths to Japan following a diplomatic spat. While Chinese officials have said the country will not use the resources as a bargaining chip, the government announced earlier this month it was raising export tariffs on certain rare earths.

Molycorp, the owner of the Mountain Pass mine, is seeking to free the U.S. from it's dependence on China for rare earth metals. By the end of 2012, the company is aiming to produce 20,000 tons of rare earths, likely enough to start meeting U.S. demand. Molycorp also plans on breaking ground to the construction of a new rare earths manufacturing facility at the site next month.

China, on the other hand, produced about 124,000 tons of rare earths in 2009, according to analysts reports. The country is also the biggest manufacturer of products that use the metals.