World's 2nd-largest rare earth mine expands China's resource advantage

China has made major discoveries of rare earth elements and other key minerals in Sichuan and Gansu Provinces in a new round of mineral exploration, according to the Ministry of Natural Resources, which made the announcement on Wednesday.

The most significant find came from the Maoniuping rare earth mine in Mianning county, Sichuan Province, where total rare earth oxide resources reached almost 9.67 million tonnes. The deposit, now the world's second-largest producing light rare earth mine after China's Bayan Obo area in Inner Mongolia, represents a more than 200% increase from previously identified reserves. An additional 27.13 million tonnes of fluorite and 37.22 million tonnes of barite were also found as associated resources.

The discovery had an unusual origin. Geologists initially mistook the deposit for an ordinary lead–zinc occurrence before high levels of lanthanum and yttrium in samples led them to recognize its true value.

To reach the deep ore body, the new exploration team drilled more than 60,000 meters over one year, with the deepest hole reaching more than three times the depth of any previous borehole.

These minerals are essential to modern industry. Rare earth elements such as neodymium and dysprosium are used in electric vehicles, wind turbines and precision-guided weapons, while europium and terbium are critical for LED lighting. Fluorite is the primary source of fluorine for refrigerants and nonstick coatings. Barite serves as a weighting agent in oil drilling and as a contrast agent for medical X-rays, and antimony is widely used as a flame retardant in electronics, aircraft and high-speed trains.

The find adds to a series of exploration successes in recent years, which also included the discovery of a large antimony deposit in Gansu's Dangchang county, as well as major copper, gold and lithium resources in other regions.

While the US produced 45,000 metric tons of rare earths in 2024 – roughly one-sixth of China's output – it continues to rely on Chinese facilities for processing, highlighting the gap in refining capacity between the two countries.