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Illegal Rare Earth Mining is Rampant in China, Profits in Rare Earth Industry to Shrink Sharply in 2013Date:2013-08-09

SHANGHAI, Aug. 9 (SMM) - The 5th China Baotou Rare Earth Industry Chain Forum is being held in Baotou during 7-9 August, 2013. The theme of the forum is Harmonious Development of Rare Earth Permanent Magnetism Industry. The forum will focus four main aspects: latest policy on china’s rare earth industry and rare earth industry development in China and abroad; latest areas of application, current situation and market prospects of rare earth permanent magnetism materials; development strategies of major rare earth producers; trading rules of the Baotou Rare Earth Products Exchange.

The Baotou Rare Earth Products Exchange will likely begin trading in October, but detailed trading rules have not yet been announced.

Chen Yanhai, Head of the Raw Material Department of China’s Ministry of Industry & Information Technology (MIIT), urged local governments to support the establishment of mega rare earth group. 

The compiling of Medium- and Long-Term Planning for the Development of Rare Earth Industry will be finished before the end of 2013, said Ma Rongzhang, Secretary General of the Association of China Rare Earth Industry. 

Mr Ma proposed control over exports of heavy rare earth and loosening restrictions over production of light rare earth.

China Reports RMB 2 Bln in Profits in Rare Earth Industry during H1
China’s output of rare earth ore and rare earth smelting and separation products was 41,000 mt and 35,000 mt, respectively, during the first half of the year, yielding RMB 2 billion in profits. However, profits in China's rare earth industry is expected to shrink sahrply this year. 
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China’s Rare Earth Exports Begin to Grow in February
China’s rare earth exports have been growing each month since February. China exported 2,196 mt of rare earth in April, up more than 60% YoY and 28% MoM, according to China Customs. This is because slowing destocking and replacement of rare earth from technology progress turned Chinese rare earth producers, especially private producers, more willing to export.

Problems Persist in China Rare Earth Industry
China’s mandatory target for rare earth ore output fails to keep with that of rare earth smelting and separation product output. As a consequence, illegal rare earth mining is rampant in China. Rare earth smuggling is pronounced in some regions.

70% of ion-type rare earth ore at rare earth smelting and separation enterprises in South China is secured through illegal channels, according to Ma Rongzhang. 

MIIT to Launch Three-Month Crackdown on Rare Earth Industry
The MIIT will launch a three-month crackdown on illegal activities in rare earth mining, production and circulation from August 15. 

The crackdown will target rare earth mining companies, smelting and separation enterprises and traders (including central state-owned enterprises) as regard to mandatory mining and production targets, environmental protection standards, safe production and implementation of VAT. 

 

Tags: China rare earth industry,  China rare earth exprots,  China rare earth output