Russia, EU need to pool efforts amid China’s rare earth metals monopoly-Yazev

MOSCOW, November 21 (Itar-Tass) -- Russia and the European Union should intensify cooperation in the context of China’s monopoly on the market of rare earth metals, which are used in many spheres – from defense to alternative energy projects, State Duma Vice-Speaker, President of the Russian Gas Union Valery Yazev told Itar-Tass on Sunday.

He will address delegates of the Brussels conference marking the tenth anniversary of the Russia-EU energy dialog on Monday. Russian Energy Minister Sergei Shmatko and EU Energy Commissioner Gunther Oettinger will take part in the forum.

Yazev said he would cover the subject of rare earth metals in his speech. “About 97% of world rare earth metals are produced in China, which has set export quotas and very serious duties. Meanwhile, alternative energy projects and defense cannot do without these metals. That is an area for joint efforts of Europe,” he said.

“It takes 350 kilograms of rare earth metals to make a 1.5-megawatt wind generator,” he said.

Yazev expects his report to cause heated discussions, because the world produces only 124,000 tonnes of rare earth metals, and the deficit already amounts to 10,000 tonnes. “The consumption [of rare earth metals] will grow by 1.5 times within the next five to seven years. It will take 15 years to start bigger production. Thus, this is an interesting area for cooperation,” he said.

In addition, he intends to draw attention of European partners to “the raw material dimension of the energy dialog.”

“Paradoxically, CO2 emissions are growing, especially in Asia, South America and Africa, and the consumption of coal is on the rise. A way to de-carbonize world economy is to use gas as a fuel. That will cut the emissions significantly,” he said.

Yazev called for giving the European status to the South Stream gas pipeline.