ISSN 2056-6735 (Online)

Granting China Market Economy Status
The Challenge of Governing Future Space Mining Frontiers
Update on Conflict Minerals and Union Customs CodeThe magazine of the Minor Metals Trade Association

8th Edition 2016/September www.mmta.co.uk 1

MMTA NEWS IN BRIEF
Baby Boom!
There have been several MMTA babies over the summer: congratulations to Tamara Alliot (MMTA), David Gussack (MMTA Board andExotech), Gregory Buchheit (MMTA Board and F.W. Hempel) and Colin Strang (CCMA).
New MMTA Website and Crucible
Over the coming weeks you will notice changes to the MMTA website and in particular to the format of the Crucible. Members will still
receive their monthly print edition, and now that there’s so much excellent content being produced every month, we want to allow
members to search for past articles on specific topics of interest, and access the online content from any of the current and past editions
easily. The new online format will no longer be a simple pdf, but will be an archive of our current edition and all our previous Crucible
articles, as well as (in time) other materials of interest. Some of this content will still be freely available to our valued non-member
readership, as we still want the wider community to be informed of what the MMTA and its Members are doing, but some content will
now be Members-only in future.
We hope you like the changes, and look forward to hearing from you with any suggestions.
REMADE Institute
The MMTA is delighted to announce that it is to be an Affiliate Member of the REMADE Institute and is supporting its submission to the US
Department of Energy. See below for more on the Institute’s goals and remit. US Members wishing to offer their support to the Institute,should contact them directly for more information.
On June 20, 2016, the United States Department of Energy (DOE), under the National Network for Manufacturing Innovation (NNMI)
program, released a $70M Funding Opportunity Announcement (FOA) to solicit proposals from industry-academic-government teams
for the creation on of an industry-driven manufacturing institute focused on increasing material use efficiency manufacturing throughreuse, recycling, and remanufacturing. RIT is leading proposal team under the name “The REMADE Institute” to submit a plan by the
September 28, 2016 deadline. RIT’s plan:addresses industry-defined, pre-competitive challenges, focus on the deployment and adoption of technologies deemed critical to
U.S. manufacturing competitiveness (i.e., the institute will not focus on basic research but rather taking technologies that have been
proven in a lab and deploying them to address material efficiency challenges;



unifies the top industry and academic subject matter experts across the US on the development new tools, technologies and novel
approaches to using fewer material resources and optimizing their use throughout the product life-cycle, including Idaho NationalLab, Argonne National Lab, University of Illinois, and other leading universities, national labs and industrial partners, such as Purdue
University, University of Utah, University of Wisconsin, Yale University, Oak Ridge National Lab, Xerox, and Caterpillar;will propose to make significant reductions in embodied energy and emissions through material use efficiency across all areas ofmanufacturing -- from design, production, and end of life via recycling and remanufacturing.



targets four materials -- e-waste, fibers, polymers and metals.

Includes a technical roadmap of manufacturing problems in reuse, recycling and remanufacturing present and identify foundational
projects in the targeted focus areas and a plan to fund projects over the 5-year funding term that align with the roadmap

will match the $70M in federal funding by 1:1 making at least $140M dedicated to the Institute mission.

If you are interested in becoming involved in the Institute or want to learn more about the benefits of joining – visit our website. Key
benefits of Institute membership:

Engage -- Get actively involved in important issues in the REMADE Institute’s strategic planning, road-mapping, and developmentof projects.



Build New Relationships -- Network with experts in the composites industry during our semi-annual members meetings.

Reduce Material Use Costs -- Leverage investments of over $140 million focused on accelerating the development of advanced
material use efficiency technologies over the next five years…

We hope you enjoy this month’s Crucible. Best Regards, MariaMaria Cox, General Manager
2

UPCOMING MMTA EVENTSLAST REMAINING TABLES
The MMTA’s 43rd Anniversary Dinner
Tuesday, 1st November, 2016
Lord’s Cricket Ground, London£105 MMTA Members and their guests/£150 Non
Members/Optional tour £12 (+ VAT)
To Book online, go to www.mmta.co.uk/events

Alternatively, email admin@mmta.co.uk if you prefer to receive an invoice.
The Drinks Reception is kindly hosted by Alex Stewart International

The Main Dinner is kindly hosted by RC Inspection Ltd

Other 2016 Events:
Brexit and REACH—17.00-20.00, 28th September, London

INSIDE THIS ISSUEMMTA News & Events

2-4

Space Mining: The Challenge ofGoverning Future Mining Frontiers

6

Tesla’s Master Plan

8

Letter from North America

9

New Metal ‘4 times tougher thantitanium’

11

Granting China Market Economy
Status12

Rhodium

14

Mufulira Medical Elective

16

New EU Customs Rules

18

Conflict Minerals After Brexit

19

The MMTA promotes
essential elements that add
quality, safety andenjoyment to our lives.
The MMTA is the world's
leading minor metals industry
organisation.

Expert legal panel Q & A with guest panellist, Sandra Carey of IMOA on REACH,
followed by networking drinks, kindly hosted by Penningtons Manches. This event
is free of charge (*registrations at the discretion of the host)Contact Us:

Global Metals Outlook—16.30-19.00, 6th October, New York

Address: MMTA, Suite 53, 3 Whitehall Court,
London, SW1A 2EL, UK

Metal Bulletin’s top analyst, Ed Meir of Int’l FC Stone, will be providing attendees with

Tel: +44 (0)207 833 0237

his assessment of the metals outlook followed by a Q & A and informal networking
drinks, and kindly hosted by HSBC and is free of charge to MMTA Members/$25
for Non-members

Topical Briefing & Networking Drinks, 28th November,
Düsseldorf, Germany
Further details to follow shortly

MMTA Christmas Lunch, 15th December, London
This year’s event will begin with networking drinks and carols, and is followed by afestive 4-course lunch including wine. It will be—as always—a great way to end theyear with industry colleagues and friends.
To register for any of these events, book online or contact admin@mmta.co.uk

Email: executive@mmta.co.uk

Disclaimer: The information and data contained inthis edition of the Crucible (the Material) has been compiled by the Minor Metals Trade Association (MMTA) fromsources believed to be reliable at the time of writing but
the MMTA makes no representation or warranty (express
or implied) as to the accuracy, timeliness or completenessof the Material. The Material is provided for information
purposes only, but is not to be relied upon as authoritative
or taken in substitution for the exercise of the reader’s own
skill and judgment. It should not be relied upon for any
specific or general application without first obtaining
competent advice. The MMTA, its members, staff andconsultants accept no liability whatsoever (however thatliability arises) for any direct, indirect or consequential loss
arising from any use of the Material.
The Crucible contains links to third party websites andmaterial and information created and maintained byorganisations other than the MMTA. These links areprovided solely for your convenience. The MMTA does notguarantee the accuracy, relevance, timeliness, or completeness of any third party information or material accessed by means of a link within the Crucible. The inclusion of a link is not intended to reflect the importance ofthe third party materials accessed through it, nor is it
intended to endorse any views expressed, accuracy ofmaterial, products or services offered or other information
made available via the link.

3THE MMTA’S INTERNATIONAL MINOR METALS CONFERENCE 2017
TAKING PLACE AT THE CONRAD HOTEL, DUBLIN, IRELAND, 24-26 APRIL 2017
Organised by Metal Events Ltd
The 2016 conference was our biggest yet.
Make sure you are part of the industry's premier event for the minor metals sector
with new enhanced MMTA Member Conference Rates for 2017

Be sure to take advantage of the current excellent early-bird rates:
MMTA Members will pay the exceptional rate of £600 (+ VAT where applicable) for all registrations
received by 28th October 2016
The current fee for Non-Members is £950 (+ VAT where applicable) for all registrations
received by 11th January 2017
Non-Members have time to benefit from the excellent Member rate by applying for MMTA membership now.
To find out more, contact admin@mmta.co.uk
To register for the conference or for more information please visit www.metalevents.com or
www.mmta.co.uk/conference, or alternatively email sales@metalevents.com

MMTA Conference Golf Tournament, hosted by ICD Alloys & Metals LLC

For our first golf tournament, taking place on Monday 24th April before the start of the conference, we will be at
the prestigious K Club, previous venue of the Ryder Cup.
The tournament fee of EUR150 (+ VAT) will include transport by coach from and back to the conference hotel,
breakfast on arrival, 18 holes of golf, electric buggy, and lunch
Registered conference delegates wishing to join this event, should contact admin@mmta.co.uk
4

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5Space Mining: The Challenge ofGoverning Future Mining Frontiers
By Jack Swindon, RJH Trading Limited

Photo Credit: Factor-Tech Magazine

law concerning space and property rights within it is tempestuous.
The basis of space law is found in the 1967 Treaty on Principles
Governing the Activities of States in the Exploration and Use ofOuter Space, including the Moon and Other Celestial Bodies (‘Outer
Space Treaty’). 140 countries are party to the Outer Space Treaty,
and a further 24 who have signed it but are yet to ratify it. This
treaty fundamentally established the principle that no nation can
own the Moon. Article II of the Treaty states that Outer Space,including the moon and other celestial bodies, is not subject to
Valuable deposits of titanium are present, and an abundance of highnational appropriation by claim of sovereignty, by means of use orvalue platinum on the moon and in asteroids would dwarf the levels
occupation, or by any other means. The common consensus is thatcurrently produced on Earth. Space law currently encourages
this principle is extended to individuals and private companies, such
exploitation of minerals, but this may change with the economic
as Deep Space Industries and the Google backed Planetaryand environmental landscape. This is due to the advent of privately
Resources, which want to harvest resources to fund theirfunded space programmes, along with potential concerns over thepermanent space development. India has already voiced concerns
amount of matter being brought into the Earth’s atmosphere and its
over the limited scope of the Treaty. Retired Air Marshall S.
unknown consequences. The Google Lunar X Prize has been set up
Krishnaswamy said in a speech at a New Delhi symposium on outer
to encourage growth of privately funded space programmes and isspace that "India would like to appeal to [the] international
currently being competed for by 16 teams from around the world.
community to see what holes must be plugged" and whilst he wasSpace law will need to adapt to this changing landscape and will
primarily concerned with the militarisation of space, similar
play a significant role in metal trading in the near future, withconcerns could equally be raised about space mining.
asteroid mining due to begin in 2020. The key questions which will
China has plans to land a probe on the Moon later this year andneed to be answered surround property rights. When theastronauts by 2020. Because China's lunar plans are more
technology has developed to make space mining financially viable,
ambitious than most, some fear they may get too much control ofthe principles of the 1967 UN Outer Space Treaty, which currently
the moon. If the law remains stagnant and based on a first-comeforms the foundation of space law, will need to be updated.
first-served basis, then we run the risk of a ‘second space race’Supplies of metals may be limitless, but the history of international between countries vying to be the first to exploit the commodities

The potential resources from space mining are limitless. Scientists
have already confirmed that water is present on the moon. NASAsays that frozen water in the dark recesses of polar craters can beextracted and split into hydrogen, which can be used for rocket fuelas well as conversion into oxygen for breathing. The potential forrefueling in space opens up far greater possibilities for longer
missions, more viable and economical space docking, and perhaps
the potential for inter-planetary colonization.

6

Photo Credit: World Economic Forumof the moon and asteroids. This is exacerbated by further
competition from private companies such as Deep Space Industries
and the Google backed Planetary Resources. Other countries areinvesting in space mining, and Luxembourg in particular isinvesting heavily in asteroid mining and wants to establish itself as
the European centre and ‘Silicon Valley’ of space mining. As thegraph above demonstrates, the potential commercial advantagesof asteroid mining are huge, and once this value is realised, then it
will be more difficult for countries to agree on the direction forspace law to take.

as to what will actually happen if a company or even a sovereignstate encroaches on another entity’s activities, as there are
currently no enforcement mechanisms in place.
Countries such as USA, China and Luxembourg will be reluctant to
ratify any UN resolutions when they have invested heavily under the
principles of ‘finders keepers’ established in the Outer Space treaty.
This is evidenced by the failure of the The Agreement Governing the
Activities of States on the Moon and Other Celestial Bodies (‘Moon
Agreement’). The Moon Agreement was a UN Resolution in 1979
that was meant to be a progression from the Outer Space Treaty
and aimed to turn jurisdiction of all celestial bodies (including theorbits around such bodies) over to the international community.

New legislation has considered the commercial aspect of space,
whereas the Outer Space Treaty was more concerned with
diplomacy and military factors. The US Commercial Space LaunchThus, all activities would necessarily have to conform toCompetitiveness Act of 2015 states that any materials discovered oninternational law, including the United Nations Charter. The Moon
the moon or on an asteroid by American companies is their
Agreement has effectively failed, as it has not been ratified by any
property and they can do with it what they will. The consequence ofcountry that engages in self-launched manned space exploration or
this is that individuals are more likely to invest in space mining withhas plans to do so. Any new proposed treaty will need to allow
the knowledge that they are free to keep what they discover.
enterprise whilst setting controls. This will need to be put in place
Legislation may have to be updated once competition increases andsoon, as the two biggest players in private space programmes havethe unfettered profit making begins. This Space Act breaks fromalready set out their ambitions.
the spirit of the Outer Space Treaty which focused on the common
good of scientific research and sharing of information and property Deep Space Industries is already planning the deployment of 25-32
kilogram (55-70 pound) mini-satellites to asteroids with goodin space. The inheritable right of sovereign states to use space forprospects to better assess their resources and bring back samples.
peaceful purposes was also stressed by the European Union in2008 when it initiated a procedure to develop an International Code Planetary Resources has identified asteroids for exploitation using
space telescopes placed in orbit last year. The two companiesof Conduct for Outer Space Activities. Whilst this code is not
estimate that the new space gold rush could require several billion
intended to be legally binding, it aims to provide a set of principles
and guidelines agreed to on a voluntary basis amongst states. The dollars over the next 10-15 years. Space law will also need to tackle
question remains, as stressed by India at the New Delhi Symposium, the unknown variable of the environmental effects that space7

mining will have on our atmosphere. Scientists predict that themass amount of dust caused by space mining alone could have adisastrous impact, as it could find its way back to Earth, smashinginto satellites and anything else orbiting the planet.
The economic impacts of bringing into our atmosphere large
quantities of precious metals are that whoever was able to do it
first would have a huge power to manipulate prices. However, theenvironmental consequences of bringing large amounts of matter
into the Earth’s atmosphere are unquantifiable. What this means isthat the law cannot afford to fall too far behind innovation. It is
foreseeable that it may be more economically viable to mine,
process and use space resources in space. This would
predominantly be for refuelling spacecraft and aiding scientificdiscovery and would play a part in any future interplanetarycolonisation. This will cause its own problems of governing ajurisdiction beyond Earth. The Moon Agreement of 1979 and thereluctance of major space-faring nations to ratify it is an ominous
reminder of the difficulty in forming a consensus amongst nations,especially once the disparities of scientific knowledge, levelsof funding and the presence of private space companies are taken
into account.
Sources:
United Nations for Outer Space Treaty website
BBC Magazine
Physics News
World Economic Forum
Factor-Tech Magazine
Physics.org
Space.com
Nuclear Threat Initiatives

Tesla’s Master Plan

On July 30th, the grand opening ceremony of Tesla’s Gigafactory based outside Sparks, Nevada took place. Although nowhere near fullplanned capacity, this is a major step for Tesla moving towards their mission of accelerating the world’s transition to sustainable energy.
The plant will produce the lithium-ion batteries required to power the planned production rate of 500,000 cars per year by the end of thisdecade. Tesla alone will require today’s entire worldwide production of lithium-ion batteries, and the company expects to be at full working
capacity by 2020, with the first cell production commencing in 2017.
The Gigafactory will produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste,
and simply having the whole process under one roof. The expectation is that the per kilowatt hour (kWh) cost of the battery pack will be
reduced by 30%.
This massive $5 billion investment is on a 3000 acre (12.14 SqKm) site and now employs 1,000 workers building seven days a week on two
shifts in an effort to have lithium-ion batteries rolling off the manufacturing line earlier than originally planned. The current structure is stillless than one sixth the size of the completed construction.
The popularity of lithium-ion batteries has been growing steadily over the last few years, but since the announcement of Tesla’s plan tobuild the Gigafactory, the price of lithium has skyrocketed in the last year. The price of lithium carbonate surged 30% to around $8,000 aton, with some spot market trades apparently hitting $25,000. This makes for a welcome change, certainly in traders’ eyes, as the last ten
years have not been been on a high. It is expected that market volatility will settle and supply will eventually creep above demand over the
next few years.
http://etfdailynews.com/2016/08/14/tesla-might-have-a-big-problem-finding-all-the-heavy-metals-it-needs/
8

LETTER FROM

To perhaps a more interesting topic. As you’ll already know, I like to

NORTH AMERICA“a 1% penetration of the aluminium alloy
market would “translate to 3,000 tonsof cerium.”

By Tom Butcher, Independent Consultant

metals. The result of some research, actually reported back in June,

keep my eye out for interesting scientific advances using minor

from the US Department of Energy’s Oak Ridge National Laboratory
Dear Members

recently caught my attention. I don’t often mention rare earths, but

I trust all of you have had excellent summers, whether away on

the news from the DoE and its partners, Lawrence Livermore

not much below 100%. It is, however, and thank goodness, a little

tolerant than existing products.” But, the really interesting thing isholiday in parts far (near), or at home. We’ve had a tolerable summer National Laboratory and Eck Industries (based in Wisconsin), was, I
thought, particularly interesting. Together they have developed
here in New York, with only couple of stinking hot weeks when thealuminium alloys that are "both easier to work with and more heattemperature went up to high 90°s F and the humidity remainedcooler now.

that the alloys contain cerium.

Back at the beginning of May I wrote you about what the, then, twoThis could be really good news, not only for those who use theleading presidential candidates thought of both the Trans-PacificPartnership (TPP) and the Transatlantic Trade and Investment

aluminium alloys, but also for producers of rare earths. Since,
according to Oak Ridge, cerium accounts for up to half the rare earth

Partnership (TTIP) with the EU.

content of many rare earth ores, and nobody wants to buy it, thisMaybe I should not have bothered. As things currently look, eachAccording to one of the researchers, a 1% penetration of the

trade agreement now looks increasingly unlikely to be
consummated. Here in the US, there has been a distinct shift in

could create both a useful and valuable market for the metal.
aluminium alloy market would “translate to 3,000 tons of cerium.”mood from the optimism at the start of the year that passage of TPP The new alloys sound pretty attractive. They are low cost, they have
exceptional high-temperature stability, they have reduced
through Congress could be won, to pessimism that it would, now,
fail to garner enough votes in either the House or Senate.

heat-treatment requirements and, significantly, they are highly

castable. (This last is especially important as it is, I understand, more

But maybe Clinton and Trump have, actually, contributed collectively difficult to cast most alloys with exceptional properties.) With theirhigh-temperature characteristics, used in internal combustion“with the UK ex-Europe and not, therefore,
accessible through TTIP, the deal might notlook as attractive as it did to the US.”engines, the alloys could allow engines to run hotter and to be lighter,both ways to increase fuel efficiency.
I, for one, will be fascinated to see what happens with these
new alloys.
And, on that optimistic note, I shall bid you farewell, whilst wishingto TPP’s impending demise. Whilst Trump’s position – virulently

you all the best from a rather pleasant New York.

anti-TPP – hasn’t changed much since my previous letter, Clinton’sYours

has hardened considerably. Indeed, a recent Wall Street Journal

article reported that “…aides to Mrs. Clinton say she now plans to tear ©2016 Tom Butcher, August 31st,, 2016

up the pact and start over.”
As for TTIP, well, European members probably know much more
about it than I. But from what I can see, it, too, looks doomed –especially if Germany’s economy minister, Sigmar Gabriel, is to bebelieved. And Brexit cannot have helped: on the one hand, the EU
has lost the support of the UK as a member, and on the other, with
the UK ex-Europe and not, therefore, accessible through TTIP, thedeal might not look as attractive as it did to the US.
We shall have to wait and see on both.

Sources:
The Wall Street Journal: Diminishing Prospects for Trans-Pacific Partnership CloudObama Goals, http://www.wsj.com/articles/diminishing-prospects-for-trans-pacificpartnership-cloud-obama-goals-1471995574, ; August 23, 2016
Oak Ridge National Laboratory: New alloy promises to boost rare earth production
while improving energy efficiency of engines, https://www.ornl.gov/news/new-alloy-promises-boost-rare-earth-production-while-improving-energy-efficiencyengines; June 3, 2016

9

10

New Metal ‘fourtimes tougher
than titanium’
By James Walsh, MMTA
The search for new hard materials is often challenging, but the vast
application potential is a strong incentive to continue this pursuit.
One recent success lies with scientists in a lab at Rice University in
the US where a super-hard metal has been made, by melting
together titanium and gold.
The alloy, beta-Ti3Au, is the hardest known metallic substancecompatible with living tissues and has potential for making
longer-lasting medical implants, a trait it claims from thespontaneous build-up of an inert and stable oxide layer.
Current knee and hip implants have to be replaced after about 10
years due to wear and tear.
Evidence from wear experiments reveal that this enhanced
hardness is associated with a low coefficient of friction (COF).

Image: First-hand experience of titanium implants

form of the alloy, and it is this crystal structure that is four times
harder than titanium. At lower temperatures, the atoms arrange inanother cubic structure, called the alpha structure, which is about
as hard as regular titanium.
Titanium is known to be the most bio-compatible metal due to its
resistance to corrosion from bodily tissues and fluids, its
bio-inertness, high fatigue limit and capacity for osseointegration,
which refers to the direct structural and functional connection
between living bone and the implant.

This new alloy may also have applications in the drilling and thesporting goods industries, among many other potential fields. The
The other beneficial economic factor comes with the ability of thischallenge now, is to bring this material to market and identify how
compound to adhere to ceramic parts which can reduce the weight
viable it will be for new manufacturing techniques such as 3D
and cost of medical components.
printing.
Preparation of the compound is an important aspect of the
Sourcessuperior properties, and temperature can make a big difference.
http://www.bbc.co.uk/news/science-environment-36855705
Making the beta-Ti3Au alloy, which is three parts titanium and one http://advances.sciencemag.org/content/2/7/e1600319
part gold, at high temperatures produces an almost pure crystalline

GKZ Collaborative Agreement
The MMTA is delighted to announce that it has signed a cooperation agreement with German Geokompetenzzentrum (GKZ) in
Frieberg. GKZ is a triple helix network of industry, research, and administration operating in the fields of mineral raw materials along
the whole value chain.
The head office is located in Freiberg, Saxony, a raw material science and business hot spot in the Federal Republic of Germany.
The objective of GKZ’s business is the initiation of R&D and coordinated support actions including exploitation and market surveys, aswell as close partnership with international organisations in technical and development cooperation, in order to strengthen themembers’ technology development and market entry.
GKZ is putting together teams to develop funding bidding groups, and ultimately to solve industrial problems. Through the collaborationof experts from different fields, the aim is to solve a range of contemporary problems, including in the areas of exploration, mining,
environmental and resource management, processing and recycling. As a non profit organisation, GKZ’s
aims also include training and education, as well as raising raw material awareness in society.
We very much look forward to exploring mutually beneficial areas of collaboration with Dr Wolfgang
Reimer and his team at GKZ for the benefit of the memberships of both associations.
For more information about the work of GKZ, please visit http://gkz-ev.de/11Granting China Market
Economy Status
By James Walsh, MMTA
China’s accession to the WTO (World Trade Organization) in 2001 sawthem being recognised as a non-market economy in transition,
meaning that unless Chinese firms could prove they were operating
under market economy conditions, alternative methodologies could
be used to assess the Chinese normal value of its exports to WTO
member countries.
In a NME (Non-Market Economy), domestic prices are assumed to
be unreliable in determining the normal value of the good in theexporting country, as central government intervention may have a
distorting effect on market prices. In such cases, international trade
law allows for the use of alternative methodologies for the
calculation of normal values in anti-dumping (AD) investigations
against firms located in NMEs. As China is a transition country,
evolving toward becoming a full market economy, some importing
countries have taken the decision to grant MES as part of bilateral
trade relationships.
The use of NME methodologies to calculate the normal value canlead to higher anti-dumping duties, and in view of these higher
duties, China has used foreign policy instruments to ensure thatmarket economy treatment is granted to its firms in the case of
AD investigations.
Several WTO members have agreed to recognise MES for China
earlier, for a range of reasons, including the conclusion of trade,investment or loan agreements with China. The main exceptions are
the EU, the US, Canada, Japan, Mexico and India. Argentina andBrazil, although recognising China’s MES, have not implemented thatpolitical decision and still treat China as an NME for AD purposes.

Image Hong Kong harbour Source Shutterstock

treatment of China in anti-dumping investigations after December
2016. Currently, the 52 anti-dumping measures in force cover anumber of European industries, in particular steel, silicon, andaluminium. These measures would have to follow different rules andstricter employment criteria if China is granted MES.
EU decision-makers and institutions are divided on how to cope withthese issues, however the greatest divisions can be found between
the Member States. Their positions cannot be explained by a purely
economic analysis of their trade relations with China. Rather, theimportance of Chinese economic diplomacy and positive long-term
relationships appear to be the main factors to be considered.
For instance, Germany has a very strong manufacturing base andwas, next to Finland, the only EU country with a trade surplus with
China. Although many of its industries, such as steel, are very vocal intheir opposition to MES for China, Chancellor Angela Merkel publicly
positioned herself, in principle, in favour in October 2015.

The UK, having a larger trade deficit with China and a focus on
Chinese Foreign Direct Investment rather than trade, hastraditionally been a strong advocate of trade liberalisation and a
supporter of China within the EU. Despite being in favour of granting
China MES, Germany and the UK are potential losers when taken on
In July 2016, the 18th biannual EU-China Summit was held in Beijing.
a purely economic level, according to a prominent study by the
The summit drives the relationship between the EU and China at thehighest level, and is accompanied by an EU-China Business Summit, Economic Policy Institute (EPI).
France and Italy, also cited as losers in the EPI study and runningunderlining the importance of business and economic factors tothese summits. Representatives of the EU Institutions, as well as the comparable trade deficits to the U.K., come to different conclusions.
Chinese government, such as Presidents Jean-Claude Juncker and France, with a trade deficit of around €10 billion and exporting lessthan a third of Germany’s volume, has refrained from taking a
Donald Tusk, as well as Premier Li Keqiang, attended the meeting
position on China’s MES, whereas Italy, (trade deficit of around €18
and discussed issues on the EU-China agenda.
billion), strongly opposes granting China MES.
Topics that dominated the agenda included the implications of Brexit
Therefore, instead of focussing purely on trade volumes, efforts towith regards to trade and investment relations, as well as thepromote strategic relationships, combining bilateral trade,question of whether or not China should be granted Market
Economy Status (MES) by the EU. The latter has been the subject of investments, and long-term positive economic relations, seem tovigorous debates for the past few months, with a decision due by the play a significant role.
end of the year.
Frictions exist between the European Institutions themselves. There
The current debate addresses two points: the definition of MES; and is consensus that China does not fulfil the five relevant EU criteria
the implications of the expiry of Article 15 (a)(ii) of China’s accession for MES, and after much debate, there also seems to be a consensus
that the expiration of sub-paragraph (a)(ii) does not result in an
protocol to the WTO. On the one hand, no universal definition forautomatic granting of MES to China. However, it remains to be seen
MES exists, and China’s accession protocol to the WTO does not
if and how the EU will grant MES to China; whilst modernising its
explicitly mention MES. On the other hand, the importance of the
expiry of this sub-paragraph is demonstrated in the WTO’s
12

trade defence legislation in order to protect its industries. At the EU-China Summit in Beijing, Juncker explicitly linked China’s
overcapacities in steel production to the question of MES. Whereas
the Commission’s legal service issued an internal analysis thatsuggested China should be granted MES, the European Parliament
recently issued a non-legislative resolution calling for China to fulfil
the five criteria for MES and thereby denying any automatic
applicability by December 2016.
China has been pursuing MES predominantly on a legal basis,
relying almost exclusively on its WTO accession protocol. Since EU
member states are divided, the December 2016 deadline raises thequestion of what strategies China might pursue.

overall trade has soared, despite its non-market economy (NME)status, indicating that MES is not such an acute issue, and perhaps
not one worth damaging relations with trade partners over,
especially in the midst of an economic slowdown.
Considering the above, neither economic nor legal arguments give aclear indication of what the decision in December 2016 will be, andthe risk of a “trade war” remains low. Hence, the decision isparticularly political when it comes to weighing the possible
consequences in the context of the overall relationship of EU statesand other important partners such as the US and Japan with China.

There are however several aspects influencing the EU’s decision.
First, the indecisiveness of the EU Institutions might have grave
To date, China has pursued four approaches. Firstly, China
consequences for the outcome. China’s lobbying of individual
cooperated in investigations under EU law that assessed its
member states will prove much more effective if there is no clear
progress toward obtaining MES in 2004, 2008, 2010, and 2011, after position from Brussels. Second, the debate reflects more generalwhich China ceased to cooperate. Secondly, Premier Wen Jiabao
difficulties in EU decision-making, especially regarding community
publicly mentioned incompetences. Third, whatever
September 2011 that thedecision is taken by the EU will
EU could grant China
send a message about its reliability
early MES in exchange
and legal compliance infor further support ofinternational regimes. All of thisthe struggling European
will inform and impact theeconomy. However,relationship of the EU, not only
President Xi Jinping haswith China, but also with its otherbeen more reserved.
global partners. While denying
Thirdly, at a WTO
China MES may negatively impact
meeting in late 2015,
the negotiations for the EU-China
China warned that it
Bilateral Investment Treaty,
would take WTO action
granting MES may provoke
Image
Based
on
WTO
data
SourceShutterstock
against countries that
discontent among other tradingrefuse to acknowledge China as a market economy after December partners with whom the EU is currently negotiating agreements,
2016. Finally, the Chinese approach seems to be centred onsuch as the US or Japan.
lobbying of governments or through company investments rather
The US has adopted a similar position to the EU in not granting
than through a formal negotiation process.
China automatic recognition as a market economy. Current US law
There is some concern as to China’s reaction if MES is not granted. gives huge discretion to the US administration to determine MES,
China is currently deliberating the size of its contribution to theand if granted, it could still be revoked if successfully challenged.
European Fund for Strategic Investments (EFSI) and could react to The determination of MES or NME status is based on six factors:
what it perceives as unfair treatment by limiting that contribution
1) the presence of currency manipulation,or even further restricting parts of its domestic market to foreign
2) determination of wages following free labour market
competition. Alternatively, China could enact similar
dynamics,
anti-competitive measures to the same effect. These are only
options, and any contraventions to WTO law would likely further
3) openness to joint ventures and foreign investments,
damage the spirit of international economic cooperation.
4) the extent of government ownership and control of production
Contrary to the infamous solar panels case in 2012, in which Chinameans,
launched investigations into European products, MES has an impact5) the extent of government control over the allocation ofacross many industries and nations. Given that only 1.38 percent of
resources,
EU imports from China are subject to anti-dumping, so it could
decide that the negative impact of fighting the denial of MES would 6) any other relevant factor.
outweigh the gains of MES, damaging relations with trade partners It is not long before the key date of 11 December, with tensions surein the process. It should be noted that since joining the WTO, China’s to increase ahead of the final decision.
Sources:
https://www.ft.com/content/572f435e-0784-11e6-9b51-0fb5e65703ce
http://www.youngchinawatchers.com/market-economy-status-for-china-arguments-from-brussels-and-beijing/
http://seekingalpha.com/article/3998875-china-turns-failure-reach-market-economy-status-advantage
http://www.reuters.com/article/us-china-usa-trade-idUSKCN0ZU1VU

http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/571325/EPRS_IDA(2015)571325_EN.pdf
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds397_e.htm
https://www.theguardian.com/business/2016/may/12/european-parliament-votes-against-china-marketeconomy-status-uk-steel-industry

13

Rhodium
By Maria Cox, MMTA

Other Uses of Rhodium
Alloyed with platinum and iridium, it gives improved
high-temperature strength and oxidization resistance, and is used,
for example, in furnace windings, pen nibs, and electrodes foraircraft spark plugs.
Due to its brilliance and tarnish resistance, rhodium is used toplate jewellery and the reflectors of headlights, as well as to coat
optic fibres, optical mirrors, for crucibles and thermocouple
elements.
It is also used in the glass industry to produce fiberglass andflat-panel glass.
It is used as an electrical contact material as it has a low electricalresistance and is highly resistant to corrosion.
Rhodium is also used as catalysts in the chemical industry, formaking nitric acid, acetic acid and hydrogenation reactions.

Source: Dr J Rieck, Catalyst Basics

The major use of rhodium is in catalytic converters for cars (8085%), where it reduces nitrogen oxides in exhaust gases.

Rhodium is the rarest of all non-radioactive metals. along withother platinum metals, in river sands in North and South America.
It is also found in the copper-nickel sulfide ores of Ontario, Canada.
Production comes from South Africa, Russia, North and SouthAmerica and Canada.

In brief, exhaust gases contain three harmful pollutants, created by
Rhodium is obtained commercially as a by-product of copper andthe fuel combustion process.: hydrocarbons (HC), carbon monoxide nickel refining. World production is up to 30 tonnes per year.
(CO) and nitrogen oxide (NOx). In order to minimize the effect ofwithin the matrix of the three platinum group metals, howeverthese pollutants on human health and on the environment, catalytic
during 2015, reductions were seen in the values of all three. Despite
converters were introduced, with the key active components being
ongoing efforts to find cheaper alternatives to the use of platinum,
platinum, palladium and rhodium. These platinum group metals
palladium and rhodium, tighter Original Equipment Manufacturer
have unique abilities, described by Dr Jeff Rieck of Johnson
emissions standards mean that any potential loss of performance
Matthey as facilitating “the reactions of HC and CO with oxygen tothrough use of substitutes would be deemed completely
produce water and carbon dioxide (CO2) and to promote theunacceptable. It seems therefore likely that they will continue to bereaction of CO with NOx to convert the NOx into harmless nitrogenkey components of catalytic converters for some time to come.
gas”. Rieck states that it is theoretically possible to completely
As reported recently in Recycling International (Smaller scrap
remove these pollutants. The below diagram demonstrates theprocess undergone within the converter.
dealers ‘burnt’ by PGM market hiatus), one of the side effects of thedrop in price of PGMs has been that scrap dealers have been
holding onto their stocks of catalytic converters in the hope of
seeing a reverse in the steep falls in prices of platinum, palladium
and rhodium (drops of 25%, 29% and 50% respectively). The
volume of recycled rhodium from spent catalytic converters in 2015
was 288,000 ounces, and some growth is predicted for the 2016
figure as the market adapts to the ‘new normal’ prices for PGM, andglobal vehicle sales continue to increase.
Sources:
Source: Dr J Rieck, Catalyst Basics

The key property of rhodium is that it is most effective of the three
metals in removing NOx from the exhaust, as well as contributing tothe oxidation of HC and CO, as well as very good resistance to thepoisons within the exhaust emissions. Cost has historically been
one of the limiting factors as to how much rhodium has been used
14

Catalyst Basics: Platinum, palladium, and rhodium – key ingredients that makeconverters tick
By: Dr. Jeff Rieck
Senior Technology Manager, Johnson Matthey
Recycling International, March 2016, Smaller scrap dealers ‘burnt’ by PGM market
haitus, Kirstin Linnenkoper
Special Metals Forum http://www.specialmetalsforum.com/rare-metals/5-mostexpensive-metals-in-the-world/
Lenntech http://www.lenntech.com/periodic/elements/rh.htm
Wikipedia Rhodium
Source: Royal Society of Chemistry/Chemistry World

15

Mufulira Medical
Electivefrom the lack of information I had and from being alone in a very
unfamiliar environment but as soon as I met Dr Chiponda I felt
instantly welcomed into this sub-Saharan country so far from home.
With some time to rest and recuperate before I began my placement– the Chipondas welcomed me into their home for some traditional
Zambian cuisine such as Tshima and took me round Mufulira to visit
many of the healthcare facilities where I would be placed, meeting
many friendly faces along the way.

It was difficult to know what to expect from the placements – I had
spent most of the past year in various hospitals around the West of
Medical electives are an important and hugely exciting part of the
Scotland in very modern, well-resourced facilities with much of my
medical curriculum – offering a chance to observe and get engaged
training thus being Western-centric - ie: having seen perhaps
in healthcare systems round the world and compare experiences tohundreds of patients with coronary heart disease but not one withthe services we are used to in the UK. Being at the end of my third
malaria – one of the leading causes of death in Zambia. I expected I
year of studies at the University of Glasgow medical school it was
would struggle to begin with and in the first few days I did indeed sotime to begin the arduous process of organising one of these fabled
everything was very new and so completely different fromelectives which many students in years above had waxed lyricalanything I had been taught or experienced before. It was very
about. I had heard stories of jungle clinics in the Amazon; sports
challenging start with many of the first evenings spent reading on
rehabilitation medicine in Los Angeles; mountain medicine in thehugely unfamiliar topics such as HIV-related infectious
Himalayas – the opportunities seemed endless. Yet due to thecomplications; tropical parasitic infections and the Zambian
specialised nature of medical electives, many of these exotic
prescribing regimens for various illnesses. Moreover, many of theexperiences require a host of local contacts in the country; extensive
patients were not fluent in English and much of the clerking I
paperwork and more often than not large sums of money.
performed was through a nurse translating from English to a
After several weeks of searching I was resigned to defeat – I wasn’t regional language such as Bemba or Nyanja and back again. Thereaiming for an elective with extravagance comparable to some of the were many challenges like these stemming from unfamiliarity and aaforementioned examples but merely an opportunity to work in adifference of backgrounds but these were challenges that I relisheddeveloping healthcare system and observe adaptations that arethroughout and made every day more exciting than the next.
made to work in a more resource-poor environment with theMy supervisor was Dr Tumba – a clinician of indefatigable willpower
inequalities in heath that exist in the world today.
and determination who would ensure I was challenged constantly
Having lived in Glasgow all of my life – a city in which as little as ayet given a sensible amount of responsibility within my means. On
mile in distance can mean a difference in life expectancy of almost
the first day I was merely shadowing and learning the system; by day
20 years – I am constantly exposed to and reminded of thetwo I was clerking patients in the ward and presenting them to her
inequalities in health that exist within a developing country as ourand by day three admitting them from outpatient clinics; following
own. I have always been struck by the fact that even such athem up and suggesting treatments. Dr Tumba accommodated mydeveloped country as the UK with national healthcare and welfare
vision of pushing myself into unfamiliar territories but doing so in ansystems can feature such stark inequalities in health throughout and ethical way so that all my experiences were properly supervised andtake a huge interest in the multiple socioeconomic factors that
thus I was never unsupported or expected to perform tasks I wasn’t
contribute to one’s health. Thus, experience in a developing
capable of.
healthcare system would allow me to transfer this idea of regional
I was based mainly in the Ronald Ross General Hospital – a mediumhealth disparity into a more global setting.
sized Government-run general hospital in the town of Mufulira thatAs the deadline for elective proposals loomed, I stumbled upon thefeatured male and female medical and surgical wards alongside a
Minor Metals Trade Association Bursary which offered an organized maternity ward with various out-patient clinics and a pharmacy thatplacement in the town of Mufulira in the Copperbelt region ofran alongside. However I also spent time in Kaumachanga District
Zambia and a generous £750 towards travel and sustenance there. I Hospital – a smaller primary care hospital just outside the town; theimmediately applied and was overwhelmed to hear I was successful private Malcolm Watson hospital run by the local mining company
and put into contact with my host Dr Charles Chiponda – the District and some of the clinics that ran for distributing Anti-Retroviral
Medical Officer for the Mufulira region.
therapy to chronic HIV patients.

By David Clayton, Medical Student

Time raced by and after several exams and placements it was finally
June and time to begin my journey to the Copperbelt with several
flights, stopovers and unexpected delays along the way – yet after
around 2 days of travel I finally stepped off the plane at Ndola andrealised the journey was over. I remember feeling slight trepidation
16

This allowed for a very diverse look at Zambian healthcare and thespectrum of quality of care that could be sought by financial means.
Although I got to experience a large variety of healthcare
environments in Mufulira - I spent most of my time in the underfunded and understaffed medical wards of Ronald Ross as it

provided a perfect environment to experience and learn about
healthcare in a deprived setting and adaptations that are made tosuit patients in that poorly resourced setting.
Around 14% of adults in Zambia are HIV-positive and this percentage
is reportedly higher in more rural, low income communities such as
Mufulira thus the majority of patients I saw in my time were HIVpositive and presenting with a range of the huge variety ofcomplications associated with a weakened immune system such as
Tuberculosis; infections from everyday pathogens like Cryptococcus
and HIV-related cancers such as Kaposi’s Sarcoma.
I became more aware of the social issues associated with tackling
HIV/AIDS in countries such as Zambia – encountering several
patients that had stopped their anti-retroviral therapy due tointervention from their church; patients that had opted instead for
traditional medicine practices such as sewing of herbal remedies inpatches underneath the skin and the associated underlying stigma
associated with HIV which allows it to remain as a main factor
towards the immitigable detriment of the Zambian healthcare
system as a whole. With weekends off, I travelled the length andbreadth of the country down to the bustling capital of Lusaka and to
the idyllic Livingstone and Victoria Falls at the border with Zimbabwe
in the South. Placement throughout the week and travelling at theweekends meant that by the end of the four weeks I was completely

exhausted but hugely fulfilled at having learned so much. I had felt
like part of the community of Mufulira with the welcoming nature of
all I met and felt like I had made a new home in such a previously
foreign part of the world for me.
‘Life changing experience’ is a phrase often seen as a cliché by manybut my time in Mufulira has fostered a huge interest in HIV for me
and as a result I will be pursuing an intercalated honours degree in
Immunology with a HIV-research project starting this September at
my university with a and a view towards a future career as aphysician for HIV-affected patients thus I feel like the phrase is truly
applicable to my elective this Summer. I will always have endlessgratitude towards the clinicians at Ronald Ross Hospital; the MMTA
for funding this bursary; the Chipondas for hosting me, and thepeople of Zambia for being so welcoming and allowing me to learn
far more than anything I could ever gain from just reading a
textbook.

Building on MMTA links with Mufulira, the MMTA has established ascheme to offer a maximum (at present) of two bursaries of £750
per year to individual medical students to assist with travel expenses
on their elective trip overseas to Mufulira. These bursaries do notcome out of general funds but are offered by individual members via
the MMTA. Any member wishing to sponsor a medical student
should contact the MMTA to learn more.
17

The EU takes
stock of its new
customs rules
By Jung-ui Sul, Sidley Austin LLPThe EU’s modernized customs rules came into effect in May 2016.
We reported on the key changes in the new rules in the March 2016
issue of the Crucible. Now that the new rules are in place, havecompanies noticed any benefits? Or have there been only
problems? Trade associations representing exporters, importers,
transporters and forwarders came together in a conference inBrussels on 7 September 2016 to take stock of the changes. The
European Commission also attended the conference to respond toindustry’s concerns and to give the regulator’s perspective.

Moving in the right direction
Overall, the conference speakers agreed that the new Union
Customs Code (UCC) had taken the EU in the right direction formodernizing customs. They did not raise any serious problems inmaking the transition to the new rules. However, they also
recognized that there was a long way to go until the EU would havea truly efficient customs clearance system that would work
efficiently across all Member States.

into specific issues that companies are dealing with. In otherforums, companies have been raising plenty of specific concernswith the new UCC. For example, companies are struggling withhow various Member States interpret the rules on inward
processing, temporary storage, guarantees, repayment of importduties and VAT, transit of excise goods, and the potential liability oftransporters.
The European Commission and national customs authorities areopen to resolving problems that may have arisen from the new
UCC. Such problems may be obvious to the company involved, but
may not be so visible to the regulators. If a MMTA member isexperiencing difficulties, we suggest that they contact their nationalcustoms authority to take this up.

The views expressed in this article are exclusively those of theauthor and do not necessarily reflect those of Sidley Austin LLP and
its partners. This article has been prepared for informational
purposes only and does not constitute legal advice. This information
is not intended to create, and receipt of it does not constitute, alawyer-client relationship. Readers should not act upon this without
seeking advice from professional advisers.

IN BRIEF:
Norway’s Electric Vehicle Future

It has been reported that Norway’s 4 leading politicalparties have agreed to stop the sale of gas-poweredcars by the year 2025. About 1 in 4 cars sold in Norway
is already electric, spurred on by generous statesubsidies and incentives, which have been a big factor
Trade facilitation vs. Security & Safety
in the country reaching its target of 50,000 electricvehicles by 2018, 2 years early. Norway is also one
From the trade associations’ perspective, the UCC simply did not go of the world’s biggest oil exporters.
far enough in facilitating trade. They pointed to several ways inwhich the UCC could have done better: for example, by raising the (Source: Quartz)
threshold for small-value shipments that are exempt from customs
liabilities, by expanding the scope for small and medium-sizedenterprises to self-assess their customs liabilities, and by reducing
Recycling and the Circular Economy
the administrative burden for companies that have ‘trusted trader’status (called Authorized Economic Operators or AEOs).
According to Euric President Dominique Maguin, “at aCountering the trade associations’ criticisms, the European
Commission pointed to customs’ role in ensuring security andsafety of products in the EU. Trade facilitation is an important
objective for customs, they acknowledged, but it is not necessarily
the most important one. They emphasized that customs controls
also serve food safety, counter-terrorism, intellectual property
protection, and a host of other public objectives. Nevertheless, they
were keen to move ahead in modernizing and facilitating customs
in the EU.

Issues to watch out for in the new UCC
This conference kept to a high-level discussion and did not delve
18

time when the European Commission proposes toshift towards a circular economy, the recycling sector
is paradoxically enduring a major crisis. Record low
commodity prices render the recycling of a numberof streams uneconomical.” He stressed the importanceof focussing on measures to make recycling a more
attractive option, given the environmental benefits itbrings to both the economy and society. Suggestions
for such measures included greater investment
opportunities for SMEs, better enforcement of existinglegislation in order to level the playing field.
(Source: Recycling Magazine)Conflict Minerals
After Brexit
By Ian Weekes, Crowe, Clarke, Whitehill

EU announces agreement to curb the trade in Conflict Minerals

with more than 500 employees does seem to have set the bar quite
low in comparison with the U.S., where the obligation applies to SEC
registered corporations. As a result, we question the likely level oftake up.
The Impact of Brexit
The timescale for approval of these regulations and the anticipatedimplementation period are likely to result in these regulations
becoming effective around the time of Brexit.
The UK has been actively involved in the development of the OECD
guidance, and there is general acceptance amongst the populationof the principles underlying the guidance. We believe that it istherefore likely that there will be regulation covering this area in
the UK.

The EU has announced that agreement has been reached innegotiations between the Commission, Council and Parliament overa framework to stop the financing of armed groups through trade inSome indications of whether and how these regulations might apply
conflict minerals.
to the UK can be gleaned from the operation of the Registration,
The full text of the proposed legislation is still to be developed and is
Evaluation, Authorisation and Restriction of Chemicals Regulations
unlikely to be published until the final quarter of 2016. The EU(REACH). This regulation is overseen by the European Chemicals
Parliament press release of 16 June 2016 does indicate the more
Agency (ECHA), on which representatives of all member states sit.
significant areas where changes have been agreed:
The ECHA works via designated competent authorities in eachmember state. Norway, as a member of the European Economic•compulsory due diligence checks for importers of tin, tungsten,
Area (EEA), sends representatives to meetings of the ECHA andtantalum and gold other than the smallest importers
imposes REACH regulations as a requirement for access into the•exclusion from the regulations for existing EU stocks andsingle market, but Norway does not have a vote at the meetings
recycled materialsof the ECHA.
•voluntary disclosure of sourcing practices by end users with
If a similar model were adopted for conflict minerals and the UK
more than 500 employees will be encouragedsought a relationship similar to that of Norway with the EU, it would•guidance on ‘conflict-affected and high risk areas’ to be
be unable to vote on future developments of the regulations but
provided via a Handbook for the operators to be developed bywould have to comply with them.
the EU Commission.
If the UK were to remain outside the EEA with no access to theWe generally welcome these proposals. The move to compulsory
single market, it would either have to go through a period ofdue diligence, in our view, reflects what would have become thedeveloping its own regulations, in which case the market would
industry norm under the Commission’s proposal. The resistance of a remain uncontrolled for a period of time, or choose to adopt the EUcompulsory due diligence obligation for end-users has prevented a regulations as a matter of expediency. In either of these cases export
substantial increase in the compliance burden placed on business.
to the EU would require due diligence in line with EU regulations, to
The development of a voluntary reporting obligation for end users
be conducted when the metal or mineral were imported into the EU.

MMTA Comment
The MMTA argued, along with other business associations:

That in introducing this legislation, particular consideration should be given to the level of complianceburden placed on SMEs;



That existing industry schemes should be taken into consideration as part of any compliancerequirements, to avoid costly duplication,That recycled material should be excluded from the scope,

That guidance should be given as to what constitutes a conflict affected or high-risk area (this was
originally to have been left to the responsibility of affected companies to determine for themselves).

We will continue to take opportunities to suggest measures to make this regulation manageable for companiesof all sizes, and, as always, welcome any comments from members.
1920