The US claims that Vietnam's output of rare earths has decreased as a result of China's rise

The US claims that Vietnam's output of rare earths has decreased as a result of China's rise

HANOI: According to an annual assessment that saw output from major producer China climb, the US Geological Agency severely reduced projections on Vietnam's rare earth production and anticipates it to decrease further despite its vast resource base.

Just a few months had passed since October, when Vietnamese authorities had detained business leaders who were collaborating with foreign firms to establish rare earth mining projects in Vietnam, when the U.S. Geological Survey (USGS) estimate was released in late January. were. The arrests and the USGS revision don't seem to be related.

Rare earth elements find extensive use in electrical and military equipment, as well as in the automotive, renewable energy, and electric vehicle sectors.

Vietnam will extract only 1,200 tonnes of rare earth oxides (REO) in 2022, according to USGS statistics, despite possessing the second-largest deposits in the world, totaling over 22 million tonnes. The agency had previously projected 4,300 tonnes for 2022.

According to recent USGS statistics, output decreased to barely 600 tonnes last year. By the end of the decade, Vietnam intends to increase production to between 20,000 and 60,000 tonnes annually.

A request for comment about its updated estimates was not immediately answered by the USGS. Vietnam does not provide information on the amount of rare earths it mines or the minerals it trades.

Vietnam's projected output decreased, but the USGS predicts that, as a result of China's production increasing from 210,000 to 240,000 tonnes since Beijing last year, the world's output of rare earth mining would grow from 300,000 to 350,000 tonnes in 2022. Had raised my allotment.

From 12,000 tonnes in 2022 to 38,000 tonnes in 2023, Myanmar is expected to treble its production.

intricate plans?

Vietnam was preparing fresh auctions for mining licenses at its biggest rare earth mine, which is still completely untapped, prior to the arrest on trafficking charges, according to a September Reuters article following the Australian mining firm Blackstone Minerals Ltd. An executive was cited in the report.

When asked whether bids were still scheduled, Blackstone and Vietnam's environment ministry—which oversees the mining projects—did not immediately react.

In order to deliver around 100 tonnes of rare earth oxides by the end of the previous year, Australian Strategic Materials, another mining business, teamed with VTRE in May. When contacted for information about the status of the agreement, the corporation did not answer right away.

Vietnam's abundant unexplored resources are seen as a potential alternative supplier of rare earth minerals, and the United States has decided to increase collaboration with them on this front. With estimated reserves of 44 million tonnes, China leads the world in crucial mineral extraction and processing.

From an initial estimate of 2.3 million tonnes, the USGS lowered its estimate of the country's rare earth deposits to 1.8 million tonnes. It reduced its estimate of the reserves in Russia from 21 million tonnes to 10 million tonnes.

There was no immediate reaction from the US Embassy in Hanoi.