WTO backs U.S. over China in rare earths dispute

|By:, SA News Editor

A World Trade Organization dispute settlement panel agrees with the U.S. in a major dispute, finding in favor of U.S. claims that China’s imposition of export restraints on rare earths, tungsten and molybdenum breach WTO rules.

China, which produces more than 90% of the world's rare earth elements, imposed strict rare earth export quotas in 2010, saying it was trying to curtail pollution and preserve resources; prices soared by hundreds of percent, and the U.S., EU and Japan complained that the restrictions gave Chinese companies an unfair competitive edge.

Rare earth miners include Rare Element Resources (REE) and Molycorp (MCP).