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Chinese Policies Escort The Rare Earth Industry

Sep. 19, 2020

Rare-Earth Magnets are my country's advantageous resources, as well as important raw materials and strategic resources that are indispensable in the development of national defense and high-tech industries. In order to rationally develop, utilize and protect my country’s rare earth resources, since 2006, the Ministry of Land and Resources has formulated and issued the total amount of rare earth mining control targets based on the national rare earth reserves and the mining volume of legal mines; the National Development and Reform Commission has started Market demand has also included the production of rare earth minerals and smelting separation products into the mandatory plan management, but there are differences in the planned indicators issued by the two departments.

The National Development and Reform Commission invited relevant experts from the Ministry of Land and Resources to conduct research on the unification of the mandatory plan indicators for rare earth mining and mineral production. Based on careful analysis of the current rare earth market situation, mine production and operation, and 2010 domestic and foreign rare earth demand Fully communicated and reached a consensus on the unification of the 2010 rare earth mining and production plan indicators. The strengthening of cooperation between the two departments is of positive significance for enhancing the seriousness and binding force of the implementation of mandatory plans, guiding localities and enterprises to rationally develop and utilize rare earth resources, and promoting the healthy development of Rare Earth Magnet Factory in my country.

SmCo Magnet

SmCo Magnet

At the beginning of November last year, Miao Wei, Vice Minister of the Ministry of Industry and Information Technology, went to Ganzhou, Jiangxi to investigate the development of the rare earth industry. He conducted field investigations and listened to relevant reports in various units. He pointed out that it is necessary to actively guide the construction of an industrial structure dominated by large enterprises, attract internal and external connections, and form a complete industrial chain; adopt various measures to increase the protection of rare earth resources and severely crack down on illegal mining; at the same time, promote The technological progress and technological transformation of the industry continuously improve the technological content and added value of products, so that the industry depends on technological progress and promotes the healthy and orderly development of the rare earth industry.

There are more and more signs that China, which has a monopoly on the global production of rare metals, intends to implement strict controls on the export of precious compounds. A few days ago, the Ministry of Industry and Information Technology convened representatives of key rare earth enterprises, rare earth industry association preparatory offices and scientific research and design units to hold a seminar on access conditions for the Rare Earth Industry, and conducted serious discussions on the "access conditions for rare earth industry" (discussion draft). The discussion draft improved the project approval level. Rare earth processing projects of more than 100 million yuan must be approved by the Ministry of Industry and Information Technology. New rare earth mines or smelting and processing projects must be reported to the Ministry of Industry and Information Technology for approval.

From an industry perspective, my country’s rare earth reserves currently rank first in the world, and its output also accounts for more than 80% of the world’s total. However, due to the obvious disorder of rare earth mining and smelting, overcapacity in smelting, waste of resources, and pricing power have been sidelined, and industry profits have mainly flowed to the back end of the industrial chain.

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