Legislation; Challenges and Policy Strategies: In Search for a Regulatory Framework for Sustainable Development in the Rare Earths Mining Industry

"One of the major issues that the Rare Earth Elements Mining Industry has to deal with is the legislation vacuum that exists in many countries around the world. Among these, are countries which have long history and tradition in mining. In many cases the lack of direct legislation for REE mine management as well as for other potentially polluting industries can be a barrier to sustainable development. Moreover, the case of lax legislation in China has led to environmental pollution problems and extended smuggling of rare earth elements. This paper looks into the current regulatory status on the mining of REEs, identifies the loopholes and suggests some elements for a new global legislation framework for sustainable development in the REE mining industry. The setting of this regulatory framework will be in line with the present and future challenges of the rare earths market as well as with the policy strategies that are defined internationally. The aim of such a legislative framework will be to strengthen the global rare earth elements supply chain, appease social concerns and ensure the preservation and conservation of the environment. INTRODUCTION The general public received their first introduction to rare earth elements (REEs) in 2010, when the previously inconspicuous commodities became the subjects of front-page headlines. It was when China created a furore in global high-tech markets after imposing an embargo on Japan following a minor marine dispute (Barakos et al. 2015b). Soon enough the Chinese embargo was extended on REE export restrictions all over the world and thus aroused concerns to many countries over potential supply disruptions. The world had suddenly realized that these wonder materials underpin products that they care about. Governmental and industry executives, policymakers and material scientists voiced concerns and conducted numerous reports stating the situation and the risks of a supply crisis. The price spike of 2011 intensified the crisis and the public turmoil, yet the drama did not last for long as the prices declined significantly in 2012. Nevertheless, the world was nonplussed by the fact that China has the total control of the market with more or less the 90% of the global production. More potential entrants became interested, thus initiating an exploration boom during the recent years that has resulted in a significant increase in known global REE reserves that could have potentials for exploitation."