UPDATE 1-EU considers tough stance on raw materials - draft

Tue Jan 25, 2011 2:47pm GMT

[-] Text [+]

* EU "to pursue barriers" to raw materials supply - draft

* EU considering stockpiling critical raw materials

(Adds details, reaction, background)

By Pete Harrison and Charlie Dunmore

BRUSSELS, Jan 25 (Reuters) - The European Union will consider stockpiling raw materials and will confront any country that restricts supplies, according to a European Commission strategy document.

"The EU will continue to pursue barriers hampering the sustainable supply of raw materials to the EU economy," said a draft paper seen by Reuters on Tuesday, which will feed into a strategy review to be launched before April.

Shortages of rare earth minerals used in high-tech and defence production, have sent jitters around the world since dominant producer China restricted exports.

The strategy includes examining whether to propose a stockpiling programme for the most critical raw materials. Continued...

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