The rare earth elements are defined as a group of chemical elements composed of scandium, yttrium, and the   lanthanides. The  lanthanides are a group of 15 chemically similar elements with atomic numbers 57 through 71, inclusive.  Although not a lanthanide,  yttrium, atomic number 39, is included in the rare earths because it often occurs with them in  nature, having similar chemical properties.  Scandium, atomic number 21, is also included in the group, although it typically  occurs in rare- earths ores only in minor amounts  because of its smaller atomic and ionic size.
 Rare earths production is derived from the rare-earths ores bastnasite, monazite, xenontime, and ion-adsorption clay.  Bastnasite is the  world's principal source of rare earths and is produced in China and the United States. Significant  quantities  of rare earths are also  recovered from the mineral monazite. Xenotime and ion-adsorption clays account for a  much smaller  part of the total production but are  important sources of yttrium and other heavy-group rare  earth
 (Uranium) in monazite.

 Essentially the entire world's producing reserves of rare earth minerals is located in Northern and Southern China. In fact, 80% of Chinese production is concentrated in Northern China (Baotou, Inner Mongolia) where our suppliers are located. Proven bastnazite reserves are estimated to be 48 million metric tons with prospective reserves estimated to be another 120 million metric tons. Annual Chinese rare earth oxide production presently stands at between 70,000- 90,000 metric tons, so the availability of rare earth supplies, from the standpoint of rare earth reserves, is not an issue. However recent changes in limitations placed by the Chinese government on rare earth production and export will limit their availability in the future.

 Rare Earth Supply

 China: Over the past five years China has increased its dominance of the world market, supplying an estimated 85-95% of  world  demand in 2001. It is estimated that China mined ores with a contained Rare Earths content of 75,500 tons REO  (compared with a global  production equivalent to 85,900 tons REO), exported 47,000 tons REO of Rare Earth  concentrates,  chemicals and metals and satisfied  domestic demand of 19,200 tons REO.

 USA: USA once was the leading supplier of Rare Earths in the world, but with the emergence of Chinese low-price Rare  Earths  products  in late1980s and the environmental concerns, USA has almost stopped its Rare Earths production and  become one  of the major  importers of Chinese Rare Earth products.

 CIS: The proven reserve is reported only about 6 million ton REO, furthermore it is in complex Rare Earth minerals with low  Rare Earth  contents, which is difficult to separate. After the disintegration of the former Soviet Union, the well-established  Rare Earths production  facilities are located in different CIS countries with very small quantity of production.

 Australia and India: They have monazite resources recovered as a byproduct of heavy minerals of ilmenite and zircon, but  the  production  of Rare Earth products is limited due to the high content of radioactive elements (Thorium and Uranium) in  monazite.