The political economy of countermeasures against a (near) state-owned monopoly in natural resources : a rare earth case study

(1)

The Political Economy of Countermeasures

Against a (Near) State-owned Monopoly in

Natural Resources.

A Rare Earth Case Study

Student: Ramon van Bavel Supervisor: Dr. Jeffrey Harrod Second Reader: Dr. Robin Pistorius August 2014

University of Amsterdam Master Thesis Political Science International Relations

(2)

1

List of Figures

Figure 1: Product’s life cycle ... 7

Figure 2: World primary supply critical raw materials ... 10

Figure 3: Gereffi’s approach for GVC research ... 19

Figure 4: Five GVC governance structures ... 20

Figure 5: Five step-model. ... 24

Figure 6: Periodic table indicating the 17 rare earth elements ... 26

Figure 7: Abundance of atoms of elements ... 27

Figure 8: Rare earth production process ... 28

Figure 9: Projected total REE demand growth ... ………30

Figure 10: Fractional REE demand estimation ... 30

Figure 11: Value added between oxide & metal ... 31

Figure 12: Historical overview of REO production ... 34

Figure 13: Price development of selected rare earths... 35

Figure 14: Mountain Pass REE distribution ... 37

Figure 15: Case of Molycorp: Vertical integrated supply chain ... 39

Figure 16: Share price of Molycorp Inc. ... 39

Figure 17: Mount Weld REE distribution ... 41

Figure 18: Share price of Lynas Corporation Ltd. 2008-2014 ... 42

Figure 19: Various REEs and their application in electric vehicles ... 43

Figure 20: Toyota Tsusho supply chain in 2013 ... 44

Figure 21: Strategic partnership between Lynas and Sojitz ... 47

Figure 22: Critical raw materials for the European Union ... 55

Figure 23: REE imports by country for the EU in 2012 and 2013……….58

Figure 24: REE imports by country for the EU in 2013………...59

Figure 25: Thorium bank outline ………67

Figure 26: Circular economy ……….69

List of Tables

Table 1: Four types of monopolies ... 15

Table 2: Application of rare earths ... 29

Table 3: Rare earth supply & demand in 2016 ... 31

Table 4: Primary production of rare earth oxides ... 32

Table 5: Chinese monopoly of rare earths ... 33

Table 6: Import Diversification ... 58

Table 7: Raw Material Diplomacy Multilateral ... 60

Table 8: Raw Material Diplomacy Unilateral ... 61

Table 9: Opening European Mines ... 63

Table 10: Stockpiling ... 65

(6)

5

List of Abbreviations

CSR Corporate Social Responsibility DOD Department of Defense DOE Department of Energy

ECSC European Coal and Steel Community EEAS European External Action Service

EU European Union

EURARE European Rare Earth Element Industry

GmBH Gesellschaft mit beschränkter Haftung (Company with limited liability) GVC Global Value Chain

G8 The Group of Eight (G8) Industrialized Nations HCSS The Hague Center for Strategic Studies IAEA International Atomic Energy Agency

JOGMEC Japan Oil, Gas and Metal National Corporation NGO Non-Governmental Organization

OECD The Organisation for Economic Co-operation and Development R&D Research and Development

REEACH Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals RMI Raw Material Initiative

ROW Rest of the world SOE State-Owned Enterprise SMSL Save Malaysia Stop Lynas

TEAC Thorium Energy Alliance Conference TNC Transnational Corporation

TNO Nederlandse Organisatie voor Toegepast Natuurwetenschappelijk Onderzoek (Netherlands Organization for Applied Scientific Research)

UNCTAD United Nations Conference on Trade and Development UNEP The United Nations Environment Programme

US EPA United States Environmental Protection Agency USGS United States Geological Service

US NRC United States Nuclear Regulatory Commission WTO World Trade Organization

(7)

6

List of Technical Abbreviations

REE Rare earth elements LREE Light rare earth elements HREE Heavy rare earth elements NdFeB Neodymium magnet

NiMH Nickel-metal hybride battery

Mt Metric ton

REO Rare Earth Oxide

SmCo Samarium Cobalt magnet

La Lanthanum Ce Cerium Pr Praseodymium Nd Neodymium Sm Samarium Gd Gadolinium Eu Europium Tb Terbium Dy Dysprosium Er Erbium Y Yttrium

(8)

7

Chapter 1: Introduction

Our livelihood is intimately tied to the food we eat, water we drink and places where we recreate. That's why we have to promote responsibility and conservation when it comes to our natural resources. – Mark Udall

1.0 Introduction to the Subject

Raw materials are fundamental for the operation of any economy. Disruptions or even a halt in supply can have dire consequences for any economy and society (European Commision, 2014, p. 3). This is especially true for most of the advanced economies, seeing as they depend in large degree on the provision of raw materials from external sources. This primary sector can be seen as the start point of the product life cycle, as is shown in figure 1. Raw Materials are the building blocks and foundation to the functioning of the industrial sector; indeed, all that is material stems from this sector. It has further implications for humanity as a whole; for instance the limitations concerning the supply of minerals. The provision of phosphates is essential because the derivative

phosphate ores are the core building blocks of fertilizers, and without these fertilizers food production is limited (Chemestry Views, 2010). Expectations are that in 2030, phosphate demand will have more prominence than the demand for oil. This demonstrates that the provision of raw materials is essential to all.

The assertion that the supply of raw materials will be a major issue area in the following decades is also supported by corporations. This becomes apparent given that 96% of all the corporations expect to have future problems with the

provision of raw materials (HCSS, 2014). The supply of several raw materials is currently under pressure and can be deemed as being at high risk. Raw material supply risks are not something new. The 1973-1974 oil crisis, for instance, was due to supply disruptions and increased price of oil by supplying countries (University of Berkeley, 2011). At the same time, there are also institutions and researchers who claim that technological innovation is the answer to the provision of raw materials and that “limits to supply” is more a scare-story than reality (British Geological Survey).

There are many actors involved in the supply of raw materials arena. The World Trade Organization (WTO) tries to influence policies of countries to liberalize trade in raw materials, or in other words, to reduce government involvement. Transnational corporations (TNCs) are active in the

Figure 1: Product’s life cycle (United States Environmental Protection Agency)

(9)

8 extraction and processing of raw materials and are also involved in the manufacturing industry that uses them. Environmentalists are concerned with the impact the extraction of natural resources has on the environment. They advocate against pollution on local, national and transnational levels and are represented by several NGOs. National governments fulfill different roles in this area: supplying countries can be seen to manage their own natural resources indirectly through state-owned enterprises (SOEs), while importing countries try to exert their influence to secure their demand from external sources. They all possess power to varying degrees and try to influence the operation of the industry. This research focuses on this game, specifically on the dominance of supplying countries. Monopolies in the extractive industries have been taken as a vantage point and the emphasis is what there is to be done against dominance over the market. The research question, which can be seen in this context, is the following: what are the countermeasures against a (near) state-owned monopoly in extractive industries?

1.1 Motivation

The main motivation of this research is threefold. First, it is because raw materials will play an increasingly important role in the functioning of society. Scarcity of raw materials is expected to increase, which will result in it remaining an important issue for decades to come. In other words, the motivation is the topic’s importance for society. Secondly, it is interesting because the sector of raw materials (specifically rare earths) is opaque; more transparency is needed to see how the sector operates (Jeffries, 2014). It is interesting to identify all the actors that are involved in the sector and to identify their power and interests. This is important because in the future, the scramble for raw materials will increase and transparency is a prerequisite for decent decision-making. Thirdly, within the subject area the schism between market and state is less obvious – or sometimes even non-existent. Because of this overlap in the sector, the research has to take both aspects into account; a political economic approach is ideal for this purpose.

1.2 Methodology

The research that has been conducted has been based upon inductive and deductive reasoning (Bryman, 2012, p. 26). It is inductive because using the selected case study, observations are made, a pattern is discerned and conclusions are formulated. The findings about countermeasures might be generalizable to a larger number of cases that have a similar context. It is deductive because the approach that is chosen is a well-formed theory of global value chains and power relations (which has been modified for this research). The conclusions therefore also fit in this theoretical framework as

(10)

9 confirmation of the existence of certain value chain structures and power dynamics.

The conclusions are derived from qualitative and quantitative research. Literature studies and interviews form the basis of the qualitative section. The interviews, which are carried out in semi-structured fashion, are conducted to obtain in-depth knowledge from experts in the field (ranging from consultants to professors) that complements findings from other sources, as well as to enrich the research by using several forms of data collection (Bryman, 2012, p. 473). The experts that have been interviewed have a wide variety of specialties, from chemistry to politics. It became apparent, however, that corporations within the sector were reluctant to give interviews. This also accounted for the European ERECON1_{group, whose members declined to be interviewed on grounds of confidentiality} (European Commision, 2014). Primary sources are further used from dependent and independent sources such as annual reports, Corporate Social Responsibility (CSR) reports, company websites, policy documents and news reports. This primary research is most is prevalent in chapter four and five that are combined the case study. The quantitative portion of the research is limited due to the lack of an integrated database for the rare earth industry. Eurostat, United States Geological Service and annual reports are the dominant sources of the statistics that have been used. This data has been used to gain insights into the rare earth industry through figures such as production totals, revenue streams and financing constructions. Combining qualitative and quantitative research methods has made the sector more transparent and strengthened the supporting arguments used in answering the research question.

1.3 Case Selection

As researching the extractive industries sector in its entirety is not possible, a case has been selected.2 Rare earth elements have been chosen as the subject of the case study, given that rare earths have been at the forefront of discussions about resource dependency in several fields (such as politics and economics). In comparison to oil and gas subjects, however, rare earths are less studied. Furthermore, the case of rare earth has some aspects that make it especially interesting to study from a political economic perspective. Chinese SOEs dominate the market and hold a near monopoly in the industry. The reaction against this monopoly is very interesting and comes from several of the involved actors (which include corporations, multi-level institutions, national governments, environmentalists and many others). Most of the research has focused on the Chinese monopoly, neglecting activities outside of that country. The emphasis of this research is on the activities present outside of China, especially those

1_{The European Rare Earth Competency Network, which was established to bring together scientists, policymakers and}

businesspeople in order to address supply security issues in the EU.

2_{Raw materials’ - excluding agriculture and non-energy materials - is another definition that fits the extractive industries. Raw}

(11)

10 within the European region. This is important because the EU will have to deal with China on the provision of several other “critical” raw materials. China is by far the largest exporter of these materials (as shown in figure 2). The relevance of looking at the Chinese monopoly of rare earths could therefore also provide insightful information about similar cases where China also holds a large market share in the supply of raw materials.

Figure 2: World primary supply of the 54 candidate (critical) raw materials and world primary supply of 20 critical raw materials (European Commision, 2014)

1.4 Research Overview

The research question is answered through the following chapter structure. In the second chapter, a theoretical overview of the subject of natural resources and monopolies is provided. This is done as it introduces the main theories concerning natural resources, which stem from various disciplines (such as economics and political sciences). The concept of monopolies is also defined, as this concept has a central role throughout the research and its definition is essential for the comprehension of the thesis. The third chapter focuses on the theoretical framework of the thesis, placing emphasis on the approach that has been chosen to answer the research question, namely the global value chain (GVC) approach of Gary Gereffi (Gereffi, 2013). GVC theory is combined with the new realism of Susan Strange, incorporating structural power and several other aspects into the GVC model. This approach focuses on revealing all of the actors in a supply chain, giving the geography of the chain, identifying the ties between firms and showing the influence of institutions on the value chain. This method has been altered to fit the research that conducted for this thesis. This approach has as a core quality that it can identify the entire rare earth value chain. Due to the addition of relational and structural power elements to the approach, a holistic theory was created for the comprehension of the extractive

(12)

11 industry sector (section 3.31).

The fourth chapter starts by introducing rare earths and providing a general overview of what they are, their function, the basic steps followed in processing them, and macro supply and demand trends. The core of the chapter then examines the global value chain, using the self-created five-step model presented in the third chapter to reveal more about the industry. The monopoly of the Chinese SOEs is briefly discussed before turning to the initiatives that have originated outside China. The three corporations (two mining companies and one trading company) that are the key players outside China are also discussed. It became apparent that the ties between government and corporations have been extensive in all of the cases, and that institutions such as the WTO try to influence the operation of the industry. The chapter ends with the structural power dimensions of the sector. The implementation of the five-step model makes the sector more transparent, which is a prerequisite for answering the research question.

The fifth chapter focuses on answering the research question. The focus is entirely on the EU region, although this does not mean that the emphasis is only on the political intuition of the Union; instead, it is about the geographical location at large. Other actors are also studied in this chapter. For each potential countermeasure that is discussed, an analysis is given about the strengths and weaknesses of the proposed measure. The structural countermeasures (which are focused on the long-term independence of the rare earths) are proposed as the most desirable counlong-termeasures. These measures include actions such as opening European mines, creating a Thorium Bank and establishing circle economy. It is found that active involvement of governments is required to secure the supply, given the corporations alone are not powerful enough to break the grip of the Chinese monopoly. The last chapter is the final conclusion where the research question is answered, bringing together all the findings of the previous chapters. This chapter also broadens the findings by introducing the larger political implications – in specific the role of the EU – and the environmental consequences of relying on raw material imports from China. The chapter is concluded by discussing generalizability of the main findings and suggestions for future research.

(13)

12

Chapter 2: Natural Resources & Monopolies

This chapter outlines the theories about the two key components of the research question: natural resources and monopolies. The extractive industries will be discussed from both of these fields of and it is therefore important that these concepts are elaborated before turning to the case study itself. First of all three theories about natural resources are discussed: the resource curse, resource nationalism and rent seeking. Secondly the concept of monopolies is outlined; special emphasis has been given on the different types of monopolies. This is essential because a state-owned monopoly has different characteristics compared to a “normal” market monopoly. The difference has furthermore consequences for the types of countermeasures that can be undertaken to break a state-owned monopoly. It is thus essential to comprehend the difference in order to be able to answer the research question what the countermeasures are against a (near) state-owned monopoly.

2.1 Natural Resources

Natural resources are raw materials or substances in nature that can be used for production or consumption (OECD, 2005). There can be made a distinction between renewable and non-renewable natural resources. Renewable natural resources are natural resources that after exploitation can return to their previous stock levels by natural process of growth or replenishment (OECD, 2001). Examples regarding this category are forests, solar power and wind. Non-renewable natural resources are however typified by the fact that they are exhaustible natural resources such as mineral resources, oil and gas. The focus of this research is into the non-renewable natural resources. These raw materials can be regarded as the building blocks of the economy, all the production is related to primary products. They are always at the start of the supply chain and their provision can be deemed essential to the operating of the material economy.

2.11 Natural Resource Theories

The subject of natural resources is one that has been researched by numerous scholars in various disciplines, but is dominated by economists and political scientists. Over the years several influential theories that deal with natural resources have been formulated. The most influential and important of these theories will be discussed briefly to provide insight into the academic perspective on natural resources in general. The theories that will be discussed are the resource curse, resource nationalism and rent seeking.

The resource curse is a well-known theory about natural resources. In this theory, the assertion is made that the endowment of plentiful non-renewable resources can be seen as a curse, resulting in

(14)

13 lower economic growth than countries with fewer natural resource endowments (Ross, 1999). According to the theory, this is caused by several factors. One such factor is the Dutch Disease, which in short is the transformation of the host economy due to increased exports of natural resources and decreased exports of manufactures (Ross, 1999, p. 109), volatile revenues (Ploeg, 2008, p. 1) and government mismanagement. This theory exemplifies the general debate over whether natural resources are to be considered a curse or a boon to their host societies.

Resource nationalism is another theory that has been studied extensively and can be considered quite influential in the academic debate of the previous decades. It can be defined as efforts by resource-rich nations to shift political and economic control from their non-renewable natural resources from private (which can also be foreign) interests to state controlled companies (Bremmer, 2009, p. 129). Within resource nationalism there are varying degrees, ranging from revolutionary resource nationalism (which is linked to broader political economic changes) to soft resource nationalism (in which legislative bodies are used to impose extra costs on foreign corporations) (Bremmer, 2009, p. 150, 155-156).

The last theory that will be discussed is that of rent seeking. This theory states that actors such as corporations could spend wealth on practices such as lobbying in order to increase or maintain their market share of a product without creating additional wealth (Krueger, 1974). According to rent seeking theory, actors “waste” part of their available resources, creating more or less a zero-sum game where only proportion matters (not absolute size), thereby yielding the highest rents. This competition for rents leads to less efficient allocation of resources by the parties concerned. While this is not explicitly a theory about natural resources, it is nonetheless applied in the study of natural resources. This link with natural resources can be seen in a direct relation, where more natural resources lead to an increased number of entrepreneurs engaged in rent-seeking behavior (Torvik, 2002, p. 455).

2.2 The Theory of Monopolies

Monopoly stems from the Greek word monopolion, which means rights of exclusive sale (Online Etymology Dictionary, 2014). Although there are various other applications of the concept, a monopoly is consistently defined as an exclusive right over something (namely goods or services). For instance, there is the state monopoly on the exercise of violence, which originates from the Weberian foundation of state sovereignty (Princeton.edu, 2013). Within this type of monopoly the state is regarded as the only legitimate “user” of violence through police or military action. This is not, however, the type of monopoly that will be the center of this research.

(15)

14 monopoly of goods and services within the economy. In economics the monopoly concept is usually expressed in terms of a market containing a single firm, with numerous buyers and just a single seller. According to this definition, a monopoly has several characteristics (such as lack of competition and a lack of available substitute goods). The firm involved is therefore considered to hold monopoly power, which can result in high prices and possibly inferior products (Investopedia, 2014; Economics online Ltd., 2014). In economics a firm that has monopoly status is mostly defined as having 25% or more market share in a particular market, as it is assumed that firms have beyond this point monopolistic power over the market. The workings of monopolies share three characteristics: they can maintain super-normal profits in the long run; with no close substitute to the good, the monopoly holder can drive its profits up even more; and with no substitutes available, the monopoly holder can derive the greatest monopolistic power (Economics online Ltd., 2014).

There are, however, also countermeasures against monopolies, such as regulation. This is usually referred to as the law against monopolization or anti-trust laws, as found in the US, the EU and several other countries (Cornell University Law School; The European Member States, 2008).3_These laws are enacted to prevent monopoly power, in order to ensure that society and consumers are not worse off of due to the lack of competition. It therefore should be noted that such laws are not enacted against monopolies in general, but rather against exploitation of monopolistic power. A good example is the case of Microsoft and its monopoly of Internet browsers at the turn of the millennium (Lopatka, 1999). The US and the EU made a case against the exploitation of Microsoft’s monopoly power. Users of Microsoft’s operating system had their Internet browsers bundled to the operating system, which created a browser monopoly for Microsoft. This stifled the competition of other software suppliers, as was the case for the Netscape browser (Brinkley, 2000). “A central conclusion in the government's case – and in the judge's findings of fact – was that Microsoft tied its Web browser to the Windows operating system to gain market share for its browser and put Netscape at a disadvantage“(Brinkley, 2000).

The theories of monopoly focus on the position of firms in the market. There is, however, a blind spot in these theories: states can also directly or indirectly hold a monopoly in a market through state-owned enterprises. It therefore seems that the focus of firms as monopolistic powers is inconclusive to the overall concept of monopoly. The different nature of a monopoly owned by a state may have implications for the way action is undertaking against these monopolies. Countermeasures can be taken against firms in a market in respective courts that have anti-trust laws. This overarching legal institution does not exist on the level of nation states. A state-owned monopoly in the global market therefore

(16)

15 differs from the “orthodox” concept of firm monopoly in a single open market by the fact that there is no enforcement of decisions due to the lack of central authority.

2.3 Natural Resource Monopolies

There have been several instances of (near) monopolies in the natural resource sector. These monopolies can vary in their type of ownership, in that that they may be either state- or corporate-owned. There are also two distinct levels of monopolies, defined here as the national and global level. This categorization is made to show the distinction between global and national level monopolies, while keeping in mind that there are numerous other levels (including regional and local). Table 1 provides an overview of the different types of monopolies.

Table 1: Four types of monopolies

In the category of national level and state-owned, utility companies are usually cited as an example. These companies provide infrastructure for public services and public consumption (such as water provision and sewage maintenance). A good example of a corporate-owned national monopoly is Standard Oil, the company founded by John D. Rockefeller. This American oil and gas company became so large that it can be regarded a monopoly because it bought up almost the entire competition and then merged it into Standard Oil (U-S-History.com).

There are also monopolies on the global level. At the end of the 19th_{century, the German} Bromine cartel (or Bromkonvetion) had a global monopoly in the trade of bromine, which was primarily used for photographic and sedative purposes (Folsom, 1997). This cartel was supported and more or less controlled by the German government (Investopedia). The German cartel sold bromine at a fixed price of 49 cents per pound. For customers it was a choice either to pay the high price or to be left without bromine. The last example is that of the Beers group. It is a group of companies that has dominated the entire supply chain of the diamond industry for more than a century. Their market share has dropped, however, from 90% of all diamond sales in 1980 to 50% in 2012 (Zimnisky, 2013).

2.4 Conclusion

In this chapter, a theoretical overview of natural resources has been provided. From the literature it is apparent that there are three dominating theories: the resources curse, resource nationalism and rent seeking. These theories are widely used in the academic debate and their validity and reliability are

(17)

16 discussed at great lengths by the scientific community. They have been outlined in order to show where the debate about natural resources is currently focused. Given that they do not focus on monopolies (let alone state-owned monopolies, these theories are less relevant for this thesis. The literature about (state-owned) monopolies on the global scale is thin to non-existent, and therefore the research question does not fit in the current academic debate that has been outlined before. The theory of resource nationalism is perhaps an explanation as to why China has a state-owned monopoly; it does not, however, explain countermeasures against it.

Secondly, the concept of monopoly has been defined and an overview has been given to exemplify the four different monopolies in natural resources. The distinction in monopolies has been made on the basis of market scale and ownership. It shows that the concept of economic monopoly should be more extensive than the narrow definition of a market containing a single firm, with numerous buyers and just a single seller that is predominantly used. The global state-owned monopoly will be at the center of the research that is the case for rare earths and is discussed in chapter 4. The categorization was further important for the legitimatization of the thesis, as it shows that for this type of monopoly, different countermeasures apply. The “conventional” countermeasure of court action is not possible due to the lack of an overarching institution that can enforce such a decision. For instance, the WTO can against a country, but it cannot enforce this ruling; there is no world police force that could actually accomplish this (Strange, 1995, p. 66). Defining monopolies this way was a prerequisite to comprehending the nature and necessity of countermeasures against exploitation of monopolistic power and for accurately answering the research question.

(18)

17

Chapter 3: Sectorial Approach

3.1 Introduction

The previous chapter has shown that there are various theories dealing with natural resources and that the scope of the current research fits only partially into this framework due to the lack of emphasis on monopolies in the sector (section 2.4). It further highlighted that different types of monopolies exist and that this categorization matters in light of what measures can be undertaken to counter a monopoly. This chapter is also theoretical in nature, but it is more practical in the sense that it is the foundation for the actual case study. It serves as the foundation for exposing the current and real situation of the rare earth sector. This is a prerequisite for answering the research question concerning what the countermeasures are against a (near) state monopoly in the extractive industries. Without understanding the current state of affairs within the sector, an accurate answer to the research question is less reliable. The main legitimization of the chapter is thus to provide the theoretical foundation of the sectorial research in the following chapter.

This approach is required to ensure the correct method and framework is used to research the global supply chain of rare earths and to conceptualize power in such a manner that it is operational for this study. These are thus the two main goals of the current chapter. The first part focuses on Global Value Chain (GVC) theory. This approach, which has been used extensively in sectorial studies of supply chains, will be used to outline the different links in the rare earth supply chain and it will outline the value that is added in the supply chain. These two steps together create an overall picture of the rare earth sector and make the involved actors and their relationships more apparent. The second part focuses on power and the “New Realism” of Susan Strange. This conceptualization of power was required in order to operationalize it in the next chapters. The New Realism of Strange is also discussed at length, because it gives fruitful insights into the structural components of power. It is also combined with the relational power notion. The last section of the chapter focuses on the approach that has been adopted for value chain research and the modifications that have been made to the central model to make it suitable for the study of natural resources (in particular, rare earth). This section, which can in essence be regarded as a synthesis of the GVC approach and New Realism, has the objective of laying the theoretical foundations of the primary research conducted in conjunction with the case study.

3.2 Global Value Chain

As previously mentioned, the analytical framework that has been selected for this thesis is that of the GVC. This is a rich field of research that brings together academics from various disciplines (such as

(19)

18 economics and political science).4_{Research of this type is used to analyze a supply chain (mostly global)} and to trace the value that is added by the different actors who are involved in creating a product. GVC analysis examines the actors and mechanisms that shape global economic processes and various types of inter-firm relationships. GVC theory is developed on the foundation of the world-systems theory coined by Wallerstein. GVC theory has been further developed to focus on TNC and the way they operate in the current global political economy (Gereffi, 2010, p. 92). Two main aspects of GVC theory shall be discussed: namely the four-step approach and governance structures. Both of these analytical tools have been implemented in the research in order to comprehend the rare earth supply chain and the relevant governance structure.

3.21 Gereffi’s Four-step Approach

The analytical framework that will be used is the four-step approach to GVC analysis that was developed by Gary Gereffi, who has been at the forefront of GVC development. The first step in this approach is to identify the stages and actors in the value chain, or in other words, to map out all of the actors involved. This process starts from the initial conception and continues until the consumer holds the product in his/her hands (Gereffi, 2010, p. 92). By exploring the linkages that are present between the actors in the supply chain, market power or control over key assets is exposed. A more elaborate notion of this concept (that is, power) is given in section 3.3.

Secondly, the geography of the value chain has to be determined. By this it’s meant the location of the chain and the relative ease of relocating the operations of firms. This is important for firms because it indicates whether natural resources are easily accessible, if new markets are available and if lower labor cost are possible (Gereffi, 2010, p. 93). Since rare earths are natural resources, this step is vital to the supply chain, and geography has important implications for the chain.

Thirdly, the ties between firms within the sector are analyzed. There are two key questions in this regard: what are the inter-firm relations and who are the dominant firms. The main distinction in this step is whether a chain is producer- or consumer-driven. This shows what the dominant groups in the supply chain are and has implications for relative power within the supply chain (Tallec, 2005, p. 6). Fourthly, the influence of institutions must be researched. These institutions are considered to include government agencies, unions, trade associations, NGOs, multilateral agencies and regulatory bodies that influence actions in the value chain. The institutional influence has become more important to GVC research. For instance, the role of states in enabling conditions for firms to operate in has

4_{The vastness of the research done in the framework of global value chains becomes apparent by all the publications that Gary}

(20)

19 become a central research theme in relation to GVC. States have the ability to create conditions that enable and shape whether and how firms, regions and nations are able to engage in global markets (Neilson, 2014, p. 3). The “state” example shows that GVC research has widened its scope beyond the corporate actors who are involved in a supply chain. This approach shall be at the center of GVC in the next chapter. At the end of current chapter an addition to the four-step model that makes it suitable for the research of natural resources shall be given.

Figure 3: Gereffi’s approach for GVC research

3.22 Five Models of Global Value Chain Governance

Global value chain research is concerned with more than just tracing the steps and showing the links involved in a supply chain. The second aspect of the approach that has been considered is governance structures. Value chains are subject to a certain governance structure, depending on the relation between suppliers and customers. The degree of explicit coordination is vital and essential for understanding the power asymmetries that can occur in value chains. Figure 3 shows the five different types of governance structures (Gereffi, 2005, p. 89). These five governance structures will also be briefly discussed.

The first governance structure is that of the market, which is typified relative to simple transactions, product information being easily accessible and producers being able to make products with a low degree of buyer coordination. The central governance structure here is price (Gereffi, 2005, p. 86). The second structure is modular governance, in which suppliers make products or provide services to a customer’s specification, taking full responsibility of the production process and spreading investments across a wide customer base (Gereffi, 2013). Third are the relational value chains. The key word here is mutual dependency, which can have various origins (such as reputation and family ties). There are a lot of interactions and therefore the coordination is extensive and deep. Fourth is the captive governance structure. Small suppliers are dependent on dominant buyers or lead firms, which raises the switching costs for supplier. The small suppliers are heavily regulated and are under extensive monitoring and control by the lead firm (Gereffi, p. 87). Lastly there is the hierarchy governance pattern, which is characterized by the vertical integration of the entire supply chain (in other words, all

(21)

20 transactions take place inside the integrated firm). Gereffi explains the existence of this type of governance as when there are no capable suppliers to be found, products are complex and product specification cannot be codified (Gereffi, 2005, p. 87). Vertical integration is driven to coordinate explicitly activities the between value chain and the need to protect resources such as intellectual property (section 4.211)

These models show that value chains are also subject to a form of governance. There is a broad distinction to be made between buyer- and producer-driven chains. Buyer-driven chains are mostly coordinated through market, modular or relational governance; producer-driven chains, on the other hand, are coordinated through captive or hierarchical governance forms (Gereffi, 2013). The type of governance structures thus has implications for the power relations and can therefore be useful for understanding the type of supply chain.

Figure 4: Five GVC governance structures (Gary Gereffi, 2005, p. 89)

3.3 Power

Power is a central concept within both International Relations and the social sciences in general. There is, however, little consensus within the social sciences about the nature and workings of power. Different schools of thought accredit diverse characteristics to the concept and the main actors wielding it. The concept is closely linked to realism as a broad approach, where the claim is held that there is something real to be observed, discovered or proven and that other approaches disguise or distort such a reality (Harrod, 2001, p. 112). This type of realism, which Jeffrey Harrod calls societal Realism, has to

(22)

21 be distinguished from the Realism of International Relations (which has a narrow scope that focuses on interstate power relations) (Harrod, 2001, p. 112). Adopting this societal Realism allows the second step regarding the study of power to be made, where the goal of the social scientist is to unmask the power concerned (i.e., the power that are disguising or distorting realities). This view is in line with Susan Strange’s definition of power as “the ability of a person or group of persons so to affect outcomes that their preferences take precedence over the preference of others” (Strange, 1996, p. 17). This also means that Strange adopts the zero-sum idea of power: if there is a fixed amount of power (of, say, 100%), a decrease of 10% of state power leads to an increase of 10% elsewhere. This is the definition of power by Strange that is used throughout this thesis, inter alia to gain an understanding how other actors are responding against the (near) monopoly of the Chinese REE supply chain.

3.31 Strange: New Realism

Susan Strange has written extensively about the nature and inner workings of power in political economy. Her focus on this issue stems from the ignorance of academic disciplines regarding power. She claims that economics has a blind spot for the concept, and that the consensus among economists is that power does not exist (Strange, 1974, p. 214). In contrast to economics, power is a central concept within International Relations; however, the discipline lacks the right scope to comprehend it. While the study of International Relations does not ignore power, the scope is too confined. The emphasis is on interstate relations, with a specific interest in military conflict (Strange, 1995, p. 64). Strange regards this as the corset of state centrist scholarship, which results in other aspects of power which she deems vital to the full comprehension of power being neglected (Strange, 1974, p. 210).

The claim against the state centrist “consensus” is that it is too static, as if the nation states are at the final stage of societal organization, or the end of history. These structures are, however, subject to change, which can in turn lead to a different diffusion of power. For example, states used to compete for control over territory and wealth-creating resources. The more farmable land these states controlled, the wealthier they were. Now states are increasingly competing for market share in a world economy where territory is no longer the base for wealth-creation (Strange, 1995, p. 56). Hence, states focus more on economic policies than foreign and defense policies. The goal for states is thus to obtain market share, with the result of this competition being that states bargain with firms for activities within their territory. “Governments may offer greater inducement, waive more rules and demands, to a foreign firm to enter its territory than they will to a native one to stay” (Strange, 1995, p. 60).

Strange is not only a critic; she also offers a holistic approach to the workings of power in the political economy. Her central question is: “Who Benefits?” Looking at beneficiaries, it becomes

(23)

22 mandatory to see who wields the power and the ways that this influences outcomes (Strange, 1976, p. 339). She states that (economic) power is derived from relationships (Strange, 1974, p. 216). According to Strange, this does not mean, however, that economic and political power is inalienable from each other. Strange states that political questions are to some extent economic and that economic question are almost always political (Strange, 1974, p. 217). She acknowledges that there is tremendous overlap between the two fields and directly protests the academic schism between politics and economics.

Strange also asserts that there is an authority/market nexus within the political economy. Politics and economics can be brought together; synthesized by structural analysis. This can be done through the effect that political authority has on markets, and vice versa (Strange, 1974, p. 217). This nexus is the overarching structure in which bargains are struck, and it is here where the relational power of bargains is present. Political authority is in this regard not confined to the state, but can be manifold (ranging from local municipalities to international organizations). This shows that Strange does not adhere to the state centrist paradigm, but recognizes that other actors can have political authority. She further states that this authority of the nation state has “leaked away, upwards, sideways and downwards” (Strange, 1995, p. 56).

Structural power is defined by Strange as follows: “[structural power] confers the power to decide how things shall be done, the power to shape frameworks within which states relate to each other, relate to people, or relate to corporate enterprises” (Strange, 1988, p. 24-25). This type of power exists due to two components: the primary structures and the secondary structures. The primary structures – security, finance, production and knowledge – are present at all times, but can differ in importance, depending on the subject of political economy that is being studied. The secondary structures are more tangible (for instance, transport systems and trade). The structural power in the secondary structures exists due to the interaction with the primary structures (Strange, 1976, p. 346).

3.4 A Modified Four-step Model

Gereffi’s four-step model will function as the basic framework of the analytical model that is used to study the GVC of rare earth minerals. It is not complete, however: it has been modified for the study of natural resources, in particular for rare earths. Altering it slightly makes it more suitable to study the supply chain and power. Therefore three alterations have been made to the four-step approach, with the result being an improved model for the study of extractive industries.

The first addition stems from the global commodity approach (GCA), which is similar to GVC research. The emphasis, however, is also on the raw materials – an aspect that has to be acknowledged when studying natural resource (Tallec, 2005, p. 5). This issue also becomes apparent when one looks at

(24)

23 debate within GVC research. There is an extensive discussion between academics about what should be included or excluded from the global value chain. According to Smith, several aspects are being neglected in GVC research like: extraction, transport and manufacturing (Smith, 2009, p. 363). Since the extraction of rare earth is vital to studying the supply chain, this aspect shall be taken into account when applying Gereffi’s four-step approach.

The second alteration has been made to the third step of the approach, which involves the analysis of inter-firm ties. This notion of relational ties is too narrow for studying of rare earths, mainly because (as the following chapter will show) the main producers of rare earths in the global market are Chinese SOEs (Radon, 2012, p. 82). The categorization of inter-firm ties must therefore be more extensive. SOEs are tools of the government and the standard definition of firms does not hold up. The resulting addition to step three is that the ties are between actors participating in the supply chain. This can vary from inter-firm ties to firm-government ties (or any other combination). In the case of Chinese SOEs it is obvious that a more extensive definition of firms is required. It is also possible to find this overlap between market and state in the EU, either on national or sub-national levels (the latter from Brussels). The role of corporations and governments is therefore not static and is subject to change. This changing role of actors in supply chains is also supported by some GVC researchers who claim that the scope of research has to be widened by incorporating governments (Lee, 2014, p. 104). This view is in line with the vision of Strange concerning the separation of state and markets (section 3.31).

The third modification originates from Strange’s New Realism, namely the principle of structural power. This type of power, which is present in the political economy, exerts itself on all stages. The combination of the four primary structures has an influence on the secondary structures regarding rare earths. This structural power analysis has become the fifth step of the model, and as figure 5 shows, it influences all of the secondary structures that are represented in steps one through four. The addition of step five results in a new model being created. This five-step model shows relational and structural power in the supply chains and creates an approximate synthesis of Strange’s New Realism and Gereffi’s global value chain research.

(25)

24

Figure 5: Five step-model.

The five-step analysis that has been outlined above will be used to show the power dynamics in the rare earth sector. This approach is justified in that showing that the processes of production and consumption vary across physical and social space makes the power dynamics apparent (Smith, 2009, p. 362). This modified approach is implicitly legitimized by Strange, based on her comment that “sectorial study should ask locus and the distribution of power and influence over economic processes – savings and investment, production, exchange and distribution” (Strange, 1976, p. 343). This will be done by giving the value chain and power dynamics. The approach has been the foundation for the sectorial study in the following chapter. It is a prerequisite to identify the actors and processes in the sector before an accurate answer can be given as to what countermeasures against a near (state) monopoly are in the extractive industries.

(26)

25

Chapter 4: Rare Earths Global Value Chain

4.1 Introduction

This chapter builds on the previous chapter by implementing the theoretical approach of the five-step model (section 3.4). Adopting this model allows the global value chain to be exposed, the actors to become apparent and the overarching structural power arena to be made visible. This chapter is therefore the first part of the case study about rare earths. It serves to give an overview of the current state of affairs of the rare earth industry, toward the overall goal of answering the research question. The results from section 4.2 and onwards are primarily based on primary research using sources such as annual reports, corporate and government statements, newspapers (websites) and financial reports. The results of countermeasures against a (near) state monopoly in the extractive industries will be embedded within the results of this chapter. It is important to deal with these measures, seeing as natural resources are becoming increasingly important. This is apparent from the following quote: “96% of global firms expect significant or moderate impact on business performance from raw material scarcity” (HCSS, 2014). The expectation is therefore realistic that the provision of raw materials will play a central role in the future of corporations and host societies. Before turning to the implementation of this five-step model, however, it is first important to provide some background information concerning rare earths: the geological basics, the related processing steps, their applications and their demand.

4.11 What are Rare Earths?

Rare earths are non-renewable natural resources that represent a group of 17 elements on the periodic table. Figure 6 shows this periodic table, with the highlighted elements indicating the atomic numbers that represent rare earths. The group is composed of lanthanides (numbers 57 to 71) and two other elements: scandium (number 21) and yttrium (number 39). Scandium and yttrium have physical and chemical properties that are similar to the lanthanides and are as a result regarded as rare earths (Nabeel Muncheri, 2013, p. 2). These 17 rare earth elements are divided in two categories: light rare earth and heavy rare earth elements. The light rare earths (LREEs) are compromised of the elements with atomic numbers between 57 and 63; heavy rare earths (HREEs) have numbers from 64 to 71. Scandium and yttrium have similar characteristics as the HREE and are therefore also regarded as part of this group. While rare earths share similar characteristics, each element has its own particular importance to specific applications. There are around 200 minerals that contain REEs; the main production of rare earths, however, is from six sources: bastnaesite, monazite, xenotime, loparite, apatite and Ion-adsorption clays (Golev, 2014, p. 53).

(27)

26

Figure 6: Periodic table indicating the 17 rare earth elements (Nabeel Muncheri, 2013, p. 3)

Contrary to their name, rare earths are not actually rare, as figure 7 shows. It becomes apparent that rare earth elements are not even considered to be among the rarest of metals. The fact is, however, that rare earths have low concentrations in the earth crusts, which means that economic exploitation is difficult (Lammertsma, 2012, p. 7). The fact that rare earths are abundant in the earth’s crust does not, however, mean that they are not scarce. They have been labeled as critical metals by the US, European and Japanese governments. This is based on three concepts: economic importance of the raw material, supply risk and environmental risk. This will be discussed more extensively in the following chapter, section 5.2. Reserves therefore do not give an accurate overview of the amount that can be physically extracted from the earth’s crust (Lammertsma, 2012, p. 11). A more useful concept is that of reserve base, which means those resources that can be economically extracted from the earth.

(28)

27

Figure 7: Abundance of atoms of elements

4.12 Production Process

The production of rare earths is a complex process. Figure 8 shows the general steps that are undertaking from ore to alloy. The mining of rare earth ores is done using conventional mining methods. What follows is the crushing of the ores to get rid of other materials present in the ore that are of little value (Hurst, 2010, p. 4). The next step is to mill the gravel to separate the different mineral gains that are present in the gravel. This procedure is further intensified during the floatation process, which entails separating non-essential minerals from the rare earths (which is done by adding an agent that causes air bubbles to come up through the bottom of the tanks). The rare earths stick to these bubbles and float to the top where they are “Scraped off” (Hurst, 2010, p. 4). The next step is a separation plant where – amongst other things – acid is used to extract the rare earths elements in their pure form. This is an example of the production process that is undertaken for the host elements bastnaesite ore; there are far more complex processing methods for other ores and elements that will not be discussed here.

(29)

28

Mining of Ore

Crusher: The Ore is crushed

into gravel size

Mill: Gravel is milled into

silt Floatation Process Mineral containing REE is extracted Seperation Process REE is seperated from mineral Oxide: REE is first seperated as an Oxide Metal:

Oxides are turned into metals Alloy:

Metals are combined to create

alloys

High tech Applications:

Hundreds of high tech applications that contain REE Alloys

Green Energy Hybrid Electric Vehicles

Water Treatment Defense High Tech

Figure 8: Rare earth production process (Hurst, 2010, p. 5)

4.13 Applications

The importance of rare earths is derived from all of the products that contain them. There are roughly three groups that are responsible for most of the rare earth consumption. First, the permanent magnets group, which is responsible for 25% of total rare earth demand. Permanent magnets, which are used primarily for wind turbines and computer hard disks, have strong and stable magnetic fields with relatively low mass. The most common of these permanent magnets are the neodymium magnets. They are also used in most electronics (such as in electric windows in cars, headphones and speakers), albeit in small quantities (Radon, 2012, p. 4.2).

Metallurgy is the second largest group in terms of demand, with 24% of the total. There are two end products in which rare earths are used: nickel-metal hydride batteries (NiMH) and metal alloys. NiMH batteries compromise 10% of the total rechargeable battery market. The demand for alloys, the other end product, is tied directly with the demand for steel, iron and aluminum (Schuler, 2011, p. 77). The third end-product group is that of catalyst, which accounts for 24% of the total demand. Fluid catalytic cracking is the largest end-product of this group. It is the process in which complex raw crude oils are broken down into useful products such as gasoline and kerosene. It has become the standard in processing crude oil globally. The quality of the crude defines the amount of REEs used for refining. For the “new” oil and gas extracting methods – such as the extraction of shale – this means using higher concentration of REEs in their processing. The other main end products are catalytic converters (the part of the car exhaust system that transforms pollutants into more innocuous

(30)

29 substances) (Radon, 2012, pp. 4-9).

These three groups, which are responsible for almost 75% of the total demand in rare earths, show that the variety of rare earth usage is very diverse. Table 2 provides an overview of all of the different rare earths and the composition in which they are used for the end products. Lanthanum, cerium, praseodymium, neodymium and yttrium are the rare earths that are used the most in all the end products.

Table 2: Application of rare earths (Radon, 2012, p. 4.20)

4.14 Demand & Supply

This section focuses on the demand for rare earths. Before turning to the key players in the global supply chain of rare earths, the demand side is briefly discussed. This is done to provide a sense of the industry size and the broad macro trends in demand. In 2013 the rare earth industry produced a total of 130,000mt of rare earth oxides (REO) and generated revenues of $4 billion (Standing Committee on Natural Resources, 2014, p. 5).5_{As such the rare earths industry can be deemed quite small. The} importance of rare earths lies not in their own revenue-generating possibilities, but in their value for the larger economy. Estimates are that rare earths are part of an industry that generates between $2 and $4.8 trillion annually. This is mainly due to the wide variety of applications associated with rare earths, as discussed in the previous paragraph.

The demand for rare earths has increased sharply in the last 10 to 15 years. Annual growth rates were achieved between 8% and 12%, depending on the elements. The expectation is that demand will continue to grow, mainly due to the wide variety of applications containing rare earths (especially given that they are mostly linked to high-tech and green-tech technologies). The manufacturing industry in

5_{All values, unless otherwise stated, are in US dollars.}

Application La Ce Pr Nd Sm Eu Gd Tb Y Other Magnets - - 23% 69% 0.8% - 2% 0,2% - - Catalysts - Cracking 90% 10% - - - - Catalysts - Automotive 5% 90% 2% 3% - - - - Mattalurgy - Batteries 50% 33% 3.3% 10% 3.3% - - - - - Mattalergy - Alloys 26% 52% 5.5% 16.5% - - - - Phosphors 8.5% 11% - - - 4.9% 2% 4.6% 69.2% - Polishing Powders 31.5% 65% 3.5% - - - - Glass Additives 25% 67% 1% 3% - - - - 3% 1% Ceramics 17% 12% 6% 12% - - - - 53% - Other 19% 39% 4% 15% 1% - 1% - 19% 1%

(31)

30 Europe is good for employing 30 million people and has revenues of $1.342 trillion (European Commission, 2008, p. 2). This industry relies on the provision of raw materials of which rare earth only one.

Figure 9 provides an overview of the estimated growth in demand, based on historical growth rates. In this scenario the demand for rare earth oxides will grow from 110,000mt of REO in 2010 to almost double that amount in 2025. The main growth in demand is expected due to magnets, alloys and polishing powders. In addition to the increase in rare earths used for specific applications, it is also important to take the expected increase of the different elements into account. Figure 10 shows that cerium will hold an important place, representing almost 40% of all the rare earths used. Lanthanum and neodymium will continue to represent around 20% of the total demand. It is expected that the demand for yttrium will shrink (in relative terms), while the demand for praseodymium will increase.

Figure 9: Projected total REE demand growth, Figure 10: Fractional REE demand estimation (Alonso, 2012) assuming historical growth (Alonso, 2012)

The previous figures have shown that the long-term demand of rare earths will increase sharply over the coming decades. The short-term increased demand is given in table 3, which shows the estimations of the United Nations Environment Programme (UNEP) concerning the supply and demand in 2016. A distinction has been made in this estimation between different REEs groups (i.e., LREE, MREE and HREE). The most striking aspect of this estimation is the expectation that HREEs will be in undersupply. It is expected that HREE will have a supply deficit of 7,500mt of REO in 2016, while the LREEs and MREEs will be in oversupply. This shows that specific groups of REEs grow at different rates, which leads to correspondingly difference consequences on supply.

(32)

31

Table 3: Rare earth supply & demand in 2016 (UNEP, 2013, p. 42) 6

4.2 The Five-step Model

The five-step model that has been outlined in chapter 3 is used to outline the global value chain of rare earths (section 3.4). In the rare earth industry, there are multiple supply chains, and not a single integrated global value chain. This does not mean that there is no overlap between the different supply chains, although they are largely separated. Given the existence of these different integrated supply chains, the first four steps of each supply chain which first be discussed individually, while the fifth step will be considered collectively for the entire supply chain. All corporations try to create new vertically integrated supply chains, which involve the ownership of an upstream (extraction) process as well as downstream operations. By controlling the entire process from the mining of the ore through to production of a finished product (such as oxides, metals or alloys) results in value being added with each production process. Figure 11 shows the substantial value that is added from oxide to metal and exemplifies a pattern that is similar for all rare earths. The figure clearly demonstrates that the additional step from oxide to metal creates huge extra value. For instance, europium is sold as an oxide for around $1,000per kg, while the processed metal is sold for six times that price (i.e., $6,000 per kg).

Figure: 11 Value added between oxide & metal (USGS, 2005)

(33)

32

4.21 Step 1: Identify Stages and Actors

The first step of the five-step model (namely, identifying stages and actors of the value chain, as shown on page 16) has been outlined. For rare earths the full production chain can be summarized as the following steps: mining, refining, processing and manufacturing. There are several different supply chains that can be identified in the rare earth sector. These are the Chinese-based supply chain(s), Molycorp’s supply chain (with mining operations in the US), Lynas Ltd. (which has its extraction operations in Australia) and the various operations of Toyota Tsusho. These supply chains were selected because these corporations are already in operation and have a substantial base. There are other initiatives currently under development in Canada, Greenland, South Africa and other countries, but they are far from being operational. The opening of a rare earth mine and processing facilities takes an average of 12 years and extensive testing, feasibility studies and construction are required before the production can begin (Schuler, 2011, p. 22). Table 4 provides an overview of the production of rare earths between 2008 and 2013.It is clear that China is the market leader in rare earths and holds a near monopoly in production. The US, Russia, India and Australia are the only countries that have a sizeable operations running, but they are all dwarfed by China’s share of the industry.

Table 4: Primary production of rare earth oxides (REO) extraction of rare earths (USGS, 2010, p. 2; USGS, 2011, p. 2; USGS, 2012; USGS, 2013; USGS, 2014)7

4.211 China

The role of China in the rare earth sector is very large and is likely remain so in the near future. Corporations in other countries have started extracting rare earths, but their market shares are very marginal compared to total global production. China was accountable for almost 90% of the global rare earth oxide production in 2013. While the operations of the Chinese rare earths industry are not at the center of this research, its role must still be taken into account. Table 5 shows the dominance of the

7_{Data is in metric tons of rare earth oxide (REO).}

World mine production and reserves

2008 2009 2010 2011 2012 2013 Percentage of total

Corporation(s) Reserves

United States 0 0 0 0 800 4000 3.59 Molycorp 13000000

Australia 0 0 0 2200 3200 2000 1.79 Lynas Corp. 2100000

Brazil 650 650 550 250 140 140 0.13 X 22000000

China 120000 120000 130000 105000 100000 100000 89.65 SOEs 55000000

India 2700 2700 2800 2800 2900 2900 2.60 Indian Rare Earth ltd.

3100000

Malaysia 380 380 30 280 100 100 0.09 X 30000

Russia 0 0 0 0 2400 2400 2.15 Lovozorsky GOK ?

Vietnam 0 0 0 0 220 220 0.20 Lavreco ?

Rest of the world NA NA NA NA NA NA 0 X 41000000

The political economy of countermeasures against a (near) state-owned monopoly in natural resources : a rare earth case study