Mineral Supply From Africa: China's Investment Inroads Into The African Mineral Resource Sector - Introduction

?Rare earths ?will not be bargaining instruments?? was stated in a headline in China Daily of 29 October 2010. The Chinese government is trying to fend off the persistent accusations from Japan, the USA, and Europe that it is manipulating the supply of these so called ?critical? metals to gain political and economic advantages. The critics maintain that China has taken the rest of the world hostage by controlling 97% of the resources of rare earths. These elements are crucial in a number of high-tech applications. They are not impossible to substitute, but difficult to do so effectively. The name ?rare earth? is a misnomer, as even the least abundant is 200 times more common in the Earth?s crust than gold. They are, however, difficult to find in economic concentrations. The Chinese near-monopoly over the rare earths, together with China?s scramble for other resources in Australia, Africa, and elsewhere around the world, is seen as an example of a Chinese strategy to take control of vital metal resources. The Chinese are also accused of using unfair and sometimes illegal business practices in this fight for resources. Practices which, critics claim, put the Chinese interests above the interests of the host countries, in particular in Africa.