India to resume rare earth exports after seven years

• India is set to export about 6,000 tonnes of rare earth chloride to a Japanese company, marking its first entry into the rare earth exporters club, which is now totally dominated by China.
• The decision to enter into such a partnership was taken during a summit meeting between Prime Minister Manmohan Singh and his Japanese counterpart, Naoto Kan, in Tokyo last year. Indian Rare Earths Limited, a public sector undertaking under the Nuclear Power Corporation of India Limited (NPCIL), will make the supplies of rare earth chloride to Toyota Tsusho.
• The Indian move to enter the rare earth exports market comes at a time when China is cutting down export quotas to ensure that its industry moves up the value chain instead of simply selling raw material for value addition by other companies and countries. India had stopped producing rare earths for exports in 2004 but is now confident of exporting it at good prices due to firming up of prices in the international market.
• India and Japan are now looking at the possibility of a joint venture between IREL and Toyota Tsusho though the issue of environmental clearances for the proposed plant in Orissa could be a major issue to be sorted out.
• Is it a right move? While China itself is cutting down export quotas why should India step it up?