Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why?
- 1.China, which is the largest producer of these elements, has imposed some restrictions on their export.
- 2.Other than China, Australia, Canada and Chile, these elements are not found in any country.
- 3.Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (c) 1 and 3 only
Statements 1 and 3 are correct, so the answer is (c). The supply concern came from China restricting exports of rare earths while demand for them in electronics kept rising. Statement 2 is wrong because rare-earth deposits occur in many countries, including India, Brazil, Malaysia, South Africa and the USA.
- ✓ 1. China was the dominant producer of rare earths and imposed three distinct types of restrictions on their export, including export duties and quotas. These measures were challenged at the WTO in dispute DS431.
- ✗ 2. Rare earths are not confined to four countries. Monazite deposits are found in Australia, Brazil, China, India, Malaysia, South Africa, Sri Lanka, Thailand and the United States. China and the United States also hold large bastnäsite deposits.
- ✓ 3. Rare earths are raw materials used in producing various kinds of electronic goods, and in other high-tech products such as permanent magnets. Rising demand for these uses, combined with restricted Chinese exports, tightened supply.
Remember · Rare-earth supply worries around 2010–12 came from China's export restrictions. The metals themselves occur in many countries, including India, Brazil, Malaysia and the USA.
Sources
- WTO – DS431: China — Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum ↗ “China imposes three distinct types of restrictions on the export of rare earths, tungsten, and molybdenum … These are raw materials used in the production of various kinds of electronic goods.”
- USGS Mineral Commodity Summaries 2012 – Rare Earths ↗ · reference work “Bastnäsite deposits in China and the United States constitute the largest percentage of the world’s rare- earth economic resources, while monazite deposits in Australia, Brazil, China, India, Malaysia, South Africa, Sri Lanka, Thailand, and the United States”
Question: UPSC Civil Services (Preliminary) 2012, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
