Rare earth quotas set for H1 of 2013 at 15,501 tons

China's Ministry of Commerce released the first batch of rare earth quotas for 2013, setting the figure at 15,501 tons, the ministry said in a statement posted on its website Friday.

The amount is approximately half of the rare earth quota for the full year of 2012, the ministry said.

The first batch includes quotas of 13,563 tons of light rare earths and 1,938 tons of medium and heavy metals, according to the statement.

A total of 24 companies, including Baogang Group, Sinosteel Corporation and China Minmetals Corporation, have been authorized to export rare earth minerals in 2013.

Baogang Group got the highest quota of 1,811 tons.

Rare earth minerals are crucial for the defense, electronics and renewable-energy industries.

China's rare earth quota has been closely watched internationally, as the country provides over 90 percent of the world's rare earth consumption with some 36 percent of the world's total reserves.

In March, the US, Japan and the European Union filed a case with the World Trade Organization challenging China's rare earth quota system.

The quota in 2012 was 30,996 tons, and China exported some 13,000 tons of rare earths through authorized channels, only 41 percent of the government's quota.

In 2011, rare earth exports were only 61 percent of the export quota.

But that does not mean that China now supplies less of the world's rare earths.

Experts said that the amount of smuggled rare earths was nearly 1.2 times that of legally exported rare earths in 2011, and the smuggled products are sold much more cheaply, which has contributed to the falling prices of Chinese rare earths.

Recent media reports said that the Chinese government is considering launching rare earth reserves, a move experts said will help to stabilize rare earth prices.