Going into effect on September 15th, China has announced a ban on exports of an important mineral called antimony, which has many heavy industrial uses and is used to make bullets, lead-acid batteries and nuclear weapons, among other things.
In a month from now, anyone looking to export the mineral will have to apply for a license and provide specific reasons for doing so. The Trends Journal reported: ‘The ministry’s statement implied licenses will be denied to any country seeking to use materials from China “to engage in activities that undermine China’s national sovereignty, security, and development interests.”’
The move has the industry rattled, as China has the world’s largest known antimony deposits.
Lewis Black, CEO of Canada-based Almonty Industries, said in a phone interview with CNBC, “Three months ago, there’s no way [any] one would have thought they would have done this. It’s quite confrontational in that regard.”
I can’t explain this move and I think that’s what rattled a lot of people in this sector, my customers, and they don’t have a plan B, which China is very aware of. There hasn’t been one for 30 years.
There’s always been an equilibrium … they were never weaponized because they could create this snowball of escalation.
Black added
CNBC noted that the ‘U.S. has not commercially mined tungsten since 2015, and China dominates global tungsten supply.’ Those in the industry believe this move by the Chinese will also have adverse effects on tungsten and other rare earth minerals.
CNBC added: ‘The U.S. has sought to restrict China’s access to high-end semiconductors, following which Beijing announced export controls on germanium and gallium, two metals used in chipmaking. While tungsten is also used to make semiconductors, the metal, like antimony, is used in defense production.’
Tony Adcock, executive chair of Tungsten Metals Group, said in a phone interview he believes that this is the start of more restrictions to come. “I think it’s the start of some export restrictions in a number of rare earths, minerals,” he said. “The way that the [Chinese Commerce Ministry] statement was written, we’ve extrapolated that to tungsten and other rare earths. It may not happen,” Adcock said, noting that “tungsten is probably the highest economic importance.”
Christopher Ecclestone, principal and mining strategist at Hallgarten & Company, also weighed-in, saying:
“China has a declining tungsten production, but tungsten is absolutely vital, far more than antimony, in military applications. During a situation where there’s a bit of a race to secure metals in case there is some sort of flare up in tensions, frankly we talk about South China Sea or Taiwan, you want to have as much tungsten as you can. But you also want people on the other side to have as least tungsten as you can engineer.”
“There’s a suspicion that the Pentagon has been re-stuffing its reserves of certain metals, and most notably antimony because it needs antimony for munitions,” he added.
AUTHOR COMMENTARY
Black also noted in the CNBC report: “They don’t want to acknowledge that this could escalate. But I don’t think China wants this to escalate either. The last thing you want to create is another boogey man [at] the beginning of a U.S. election. Let’s see in a week whether this is really a policy or not.”
Well, too late, because the U.S., across both political aisles, has made it clear that China is the enemy and must be put in its place. Trump, along with Biden and Harris, have levied all sorts of restrictions and tariffs on China, and have vowed to do more. Meanwhile, NATO has formally stated publicly that China is a “decisive enabler” of Russia. It’s nonsense.
The Trends Journal wrote in its forecast:
As we’d say in The Bronx, “Payback’s a b****.” China is responding to the tariffs and restrictions imposed on it by the U.S. and EU. Thus, the longer Beijing holds back on vital mineral exports, the higher the prices will rise for both the materials and the manufactured products that use them… which will, in turn, push inflation higher.
China holds most of the world’s known antimony deposits. Other countries with known reserves include Bolivia, Canada, Mexico, Russia, South Africa, Tajikistan, and Turkey. Known U.S. deposits are located in Alaska, Idaho, Montana, and Nevada.
I have mentioned before that if China wants to do serious damage to the U.S., and really anyone else for that matter, is has to simply go after its currency and damage the U.S. financially. BRICS and ASEAN are doing that right now, and now China is really starting to ramp up its countermeasures – which, besides pushing costs higher, will continue to put pressure on an already weak and disabled military.
Surprise surprise, the sanctions are backfiring.
Proverbs 22:16 He that oppresseth the poor to increase his riches, and he that giveth to the rich, shall surely come to want.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Serves U.S. right.
Looks like China called US’s bluff; what did they think China didn’t have the kahones to do something to the mighty USA.
Luke 6:39 (KJV) And he spake a parable unto them, Can the blind lead the blind? shall they not both fall into the ditch?
I’m thinking, will this ramp up more destructive mining/fracking in the States and Canada?
Reminds me of scriptures about God’s blessings and curses:
Deu 8:11 Beware that thou forget not the LORD thy God, in not keeping his commandments, and his judgments, and his statutes, which I command thee this day:
Deu 8:7 For the LORD thy God bringeth thee into a good land, a land of brooks of water, of fountains and depths that spring out of valleys and hills;
Deu 8:9 A land wherein thou shalt eat bread without scarceness, thou shalt not lack any thing in it; a land whose stones are iron, and out of whose hills thou mayest dig brass.
Deu 28:15 But it shall come to pass, if thou wilt not hearken unto the voice of the LORD thy God, to observe to do all his commandments and his statutes which I command thee this day; that all these curses shall come upon thee, and overtake thee:
Deu 28:23 And thy heaven that is over thy head shall be brass, and the earth that is under thee shall be iron.
Deu 28:24 The LORD shall make the rain of thy land powder and dust: from heaven shall it come down upon thee, until thou be destroyed.
Probably. They’ll have to do something to secure more resources.
I wonder why the US didn’t foresee this happening before they put sanctions toward China. Looking at the list of countries with rich sources of the said minerals, it appears that BRICS have more options than America.