BEIJING – China will reduce rare earth export quotas 30% next year to protect its precious metal supplies, the China Ministry of Commerce said.

China already cut 2010 production and export quotas 72% for the second half to 7,976 tons, based on ministry data.

If the current rate of production holds steady, medium and heavy rare earths reserves could dry up within 15 to 20 years, an anonymous spokesperson says, according to published reports. China produces 95% of the world supply.

Domestic deposits fell to 27 million tons by the end of last year, 30% of the world's total explored reserves, down 37.2% compared to levels in 1996. 

The US holds an estimated 15% of the world's reserves, but relies on imports.

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