The “Regulations on the Administration of Rare Metals” (hereinafter referred to as the “Regulations”) are expected to be promulgated soon. The “Regulations” cover a series of management measures for the total control of rare earths as well as for various stages including mining, smelting, and circulation, and are set to further strengthen the comprehensive regulation of the rare earth industry.

Although the Ministry of Industry and Information Technology’s crackdown on illegal activities involving rare earths has been ongoing, the industry has long been plagued by... “ Black rare earth ” The problem remains unresolved, and this is one of the key reasons why rare-earth prices have remained persistently low. Currently, the total annual quota for rare-earth mining is allocated in batches each year by the Ministry of Natural Resources and the Ministry of Industry and Information Technology.

Industry insiders point out that, given market demand, the industry will still overproduce because the aggregate targets set at the departmental level are not mandatory under laws and regulations, making their deterrent effect insufficient. Once the "Management Regulations" are implemented and enforced, their legal binding force will be strengthened, and controls over illegal mining will become even stricter.

It is understood that currently, China’s total control target for rare-earth oxides is relatively low, and the quota is expected to be expanded in the future. Data shows that... 2015 The total annual production of rare earth minerals is controlled at 10.5 10,000 tons—the quota for this year may remain unchanged.

Ruiddao Metals expects that, 2016 The total market demand for the year is 15.2 Around 10,000 tons, with demand from northern mines. 12.5 Around 10,000 tons; demand from southern mines is... 2.7 Around 10,000 tons—yet the market still faces a supply gap. The stringent controls on formal mines have, on the one hand, led to some capacity within the six major rare-earth groups remaining idle and reduced capacity utilization rates; on the other hand, they have created room for growth in the black industry chain.

In response, the country is currently working to raise the total control targets. However, oversight of upstream mining rights will not be relaxed, and overall legally compliant production capacity will remain stable.

As the regulatory framework continues to improve, local industrial policies are also stepping up their support. Recently, the Baotou Municipal Government issued the "Several Policy Opinions on Further Accelerating the Development of the Rare Earth Industry" (hereinafter referred to as the "Opinions"), which aims to build Baotou into a major national and even global production base for rare earth raw materials, new materials, and application products. The "Opinions" outline a series of financial and comprehensive support measures, including ensuring the supply of rare earth raw materials, offering preferential treatment for the procurement of rare earth raw materials and rewards for new materials. Enterprises will enjoy preferential treatment in terms of electricity prices and taxation, as well as access to innovation subsidies. Additionally, a Rare Earth Industry Development Fund and a Rare Earth Industry Venture Capital Fund will be established in Baotou, and efforts will be made to set up a comprehensive bonded zone for rare earths. △ (Jin Jiajie)