Here’s a crazy thought. What
if China controlled 95 percent
of the world’s oil supply and
was still buying up oil assets
across the planet? Free nations
would be terrified, and would no
doubt be scrambling to produce
their own oil while reducing
their dependence. Good thing
that’s not happening…
only it is… but with rare earth
elements and dozens of other
critical minerals. The Chinese
monopoly of rare earth elements
may be more dangerous than OPEC’s
ability to dictate oil prices not
so long ago. Just like oil and
natural gas, rare earths and other
critical minerals are essential
to most things we use.
The Middle Kingdom has quietly
grabbed the world by the throat.
All it has to do is squeeze.
China’s mining dominance
didn’t happen by accident.
Thirty years ago, Chinese leader
Deng Xiaoping proclaimed,
“The Middle East has its oil.
China has rare earths.”
China then methodically went
about the task of capturing about
95 percent of the market. Consequently,
Communist China has enormous leverage
over all nations. In addition to its
own massive mineral wealth, it provides
substantial financing to developing
nations in exchange for mineral rights.
And the Chinese have been purchasing
mines and mining stakes for decades,
including in Latin America and Africa.
This stranglehold poses an economic
and military threat to the world. The
nation most at risk is the United States.
Rare earths and the components
made from them, such as high-strength
magnets, are essential for most
defense capabilities, including
fighter jets, radar systems, smart
bombs, and satellites. In addition
to rare earths, the Department
of Defense uses about 750,000 tons
of other critical minerals each
year, most of which are imported.
In 2013, retired General John Adams
wrote a book on the folly of America’s
shocking over-reliance on critical
mineral imports. General Adams wrote,
“The federal government has not
formulated a comprehensive and
coherent policy approach to address
the national security risks of
inadequate access to many key
minerals and metals.” China has
already demonstrated its willingness
to use rare earths as a geopolitical
weapon. In 2010 it stopped shipping
rare earths to Japan, which caused a
severe economic shock and a near
standstill in manufacturing until
shipments resumed. Chinese dominance
in producing rare earths as well as
other critical minerals is only
part of the leverage it holds over
the United States and other nations.
That’s because it’s not enough just
to mine these resources. A nation also
has to have the smelters, refiners, and
processing plants to turn those
elements into usable products.
Because mining has declined in
America, those support industries
have declined as well. In addition
to that, many U.S. universities have
stopped offering courses in materials
science, metallurgy, mineral processing,
and mining engineering. One other reason
for China’s dominance in minerals and
metals is that it doesn’t value
human rights and environmental
protection the way Western nations do.
Workers are underpaid, they labor in
dangerous conditions, and Chinese
mining has created massive toxic lakes.
It’s encouraging that the Trump
Administration has recognized
America’s extreme vulnerability. But
because of bad decisions and neglect
from U.S. presidents and Congress for the
past three decades, the nation finds
itself in an extremely deep hole.
All the while, China continues to
advance its 100-year plan
for global dominance.
For the Clear Energy Alliance,
I’m Mark Mathis.
Power On.
