China boasts discovery of 38 new critical mineral sites

The Chinese government on Thursday, July 10, announced the discovery of 38 new sites of mineral reserves this year, adding an estimated 3.37 million tonnes of rubidium and 81 tonnes of gold to its already rich mineral reserve, which gives the country huge leverage in global trade and relations.

The sites reportedly include 25 large and medium-sized deposits of significant uranium reserves in Northeast China’s Heilongjiang province, rubidium in Xinglong county in North China’s Hebei province, and cobalt in North China’s Hebei province, among others, according to several Chinese state media citing the ministry.

The announcement comes at a time when global concerns are mounting over China’s use of its vast mineral reserves as a geopolitical tool.

Several countries, including the European Union, have underscored China’s quasi-monopoly on the export of raw materials critical for defence and automotive industries and have accused Beijing of weaponising critical mineral exports to gain leverage in international trade.

China’s latest discovery of mineral sites marks a further 31% year-on-year increase from the first six months last year, the country’s natural resources ministry said.

Also Read: India shares border with Tibet not China, says Arunachal Pradesh CM Pema Khandu

In the first six months this year, China increased its mineral exploration investment by more than half compared to last year, particularly in tin, bauxite, tungsten, copper and phosphate – all of which are critical for the aerospace, semiconductor and green energy industries.

The government also invested $932 million in exploring non-hydrocarbon minerals like lithium, copper, nickel, and rare-earth minerals, which are important for producing batteries used in electric vehicles (EVs). This marks an increase of nearly 24% from last year.

“[We] will improve basic geological work and advance strategic prospecting to further strengthen … national energy and mineral resource security,” South China Morning Post quoted Niu Li, deputy director of the ministry’s geological exploration department, as saying.

In 2024, China issued the highest number of mineral exploration rights, granting 581 licenses for strategic mineral exploration to mining companies. The government has issued 318 exploration rights in the first six months of this year alone.