The Ministry of Industry and Information Technology urges the six major groups to complete all integration work by the end of the year.

　　In the coming period, cracking down on illegal and non-compliant mining, smelting, processing, and sales of rare earths has been identified as one of the key priorities in China’s management of the rare earth industry.

　　2015 This year has marked a pivotal turning point for China’s rare-earth industry. Throughout the year, a series of measures—including the elimination of export quotas and tariffs on rare-earth products, as well as the adjustment of the resource tax on rare earths from a quantity-based levy to a value-based one—have had significant impacts on the industry. What is the current state of China’s rare-earth industry, and how will it evolve in the future?

　　With the above questions in mind, a reporter from the Securities Daily conducted... 8 Moon 8 On that day, I attended the event held in Baotou. “ The 7th China Baotou Rare Earth Industry Forum ” To seek answers.

　　Transformation and Upgrading Under the New Normal

　　The primary issue facing the rare earth industry

　　Prior to this Rare Earth Forum, Baotou has already successfully hosted six consecutive Rare Earth Industry Forums. The Baotou Rare Earth Industry Forum has now become a premier event in China’s rare earth industry, providing an important platform for regional exchange of experiences and enhanced mutual understanding among stakeholders in the development of the rare earth industry.

　　This time “ The 7th Baotou Rare Earth Industry Forum ” This is the third time the journalist has attended this event. Compared with the previous two sessions, this year’s event has seen some changes—perhaps due to the continued low prices of rare earths and the resulting cooling of the industry. Representatives from companies that had actively participated in previous forums, such as Guangsheng Nonferrous Metals and Xiamen Tungsten, were notably absent from this year’s gathering. Alternatively, perhaps the theme of this year’s Rare Earth Industry Forum is... “ Transformation and Upgrading of the Rare Earth Industry Under the New Normal ” For this reason, the names of numerous experts in the rare-earth field appeared in the guest directory.

　　In review 2015 When discussing the development journey of China's rare earth industry this year, Xin Guobin, Deputy Minister of the Ministry of Industry and Information Technology, stated: “ In the first half of this year, China has essentially established a pattern in which major conglomerates are leading the development of key industries. The Ministry of Industry and Information Technology, together with relevant departments, is actively promoting the initiatives of Chinalco, Northern Rare Earths, Xiamen Tungsten, China Minmetals, Guangdong Rare Earths, and Southern Rare Earths. 6 The establishment of the nation's major rare earth group has already integrated the entire country. 78 In this rare earth mining license 77 Ben and 99 in domestic smelting and separation enterprises 77 The company is expected to complete all integration tasks by the end of this year. ”

　　When discussing the technological challenges faced by China's rare-earth enterprises, Xin Guobin stated that currently, the scale of China's rare-earth application industry is continuously expanding, and its industrial chain is gradually lengthening. Among these developments, the comprehensive recovery rate of ion-adsorption-type rare-earth resources has risen from less than... 50% Increase to 75% Left and right; the market share of high-end rare-earth permanent magnet materials is by 15% Increased to 35% ; High-end LED The luminescent materials have achieved domestic production, and the domestic market share has increased by... 40% Increased to 80% Above; the automotive exhaust catalyst complies with national standards. IV Raise to national standard V Some products have achieved a breakthrough from zero in the international market.

　　In addition, according to Xin Guobin, China’s efforts to govern the rare-earth industry have already achieved phased results. “ The Ministry of Industry and Information Technology, together with relevant departments, has continuously... 4 A special campaign was launched annually to crack down on illegal and non-compliant activities involving rare earths, with a cumulative total of cases involving illegal rare-earth mining being investigated and dealt with. 56 Start by dismantling illegal rare-earth mining sites. 22 One, shut down in accordance with the law. 55 A rare-earth production enterprise had its illegal rare-earth mineral products seized. 2.3 Ten thousand tons—revocation of the business license of the enterprise. 161 This; penalty for trading enterprises 46 Home, fine. 2900 Over 10,000 yuan; smuggled rare earth products seized. 6500 Ton, case value 6 hundreds of millions of yuan, and publicly exposed the case of illegal rare-earth mining in Wuzhou, Guangxi, effectively deterring unlawful elements.

　　Illegal and non-compliant practices in the rare earth industry

　　Still relatively rampant.

　　Although, in recent years, China’s rare earth industry—whether in terms of management, technology, or... “ Crack down on organized crime ” Significant achievements have been made in various aspects; however, it must be acknowledged that considerable problems still remain within the industry.

　　During the forum, several executives from rare-earth enterprises and academic experts, when speaking with reporters, all indicated that rare-earth prices remain persistently low, severely impacting the healthy development of the industry.

　　Meanwhile, compared with foreign countries, China still has a significant gap in both basic research on rare earths and the industrialization of advanced application technologies. The performance and quality stability of rare-earth materials and devices remain insufficient to meet the development needs of sectors such as national defense science and technology and strategic emerging industries. Some materials and components still need to be imported.

　　 “ The pressure for structural adjustment remains significant. China’s rare-earth industry as a whole is still at the mid-to-low end of the value chain. Overcapacity exists in the upstream mining and separation stages, while downstream application industries lag behind in development. High-performance rare-earth functional materials and application devices remain small in scale, with low product added value, necessitating greater efforts to promote structural adjustment. ” Xin Guobin also pointed out that, “ Illegal and non-compliant activities involving rare earths remain relatively prominent. Issues such as unauthorized mining, illegal trading and processing of rare earth mineral products, and non-compliant production continue to occur from time to time. In particular, with the recent increase in the tax on rare earth resources, illegal mining activities have become even more rampant in southern rare earth mines, leading to an oversupply of market products, depressed prices, and serious damage to the interests of both enterprises and the state. ”

　　In the coming period, cracking down on illegal and non-compliant mining, smelting, processing, and sales of rare earths has been identified as one of the key priorities in China’s management of the rare earth industry.

　　Northern Rare Earths and Ganzhou Rare Earths are expected to...

　　Complete the integration by year-end.

　　According to a reporter from the Securities Daily who attended this year’s Rare Earth Industry Forum, China’s Ministry of Industry and Information Technology, together with relevant departments and local governments, will continue to intensify efforts to crack down on illegal and non-compliant activities involving the mining, smelting, processing, and sale of rare earths, and will thoroughly eradicate this malignant tumor of illegal and non-compliant rare earth practices.

　　Regarding specific measures, the following steps are involved: First, we must strengthen inspection and supervision, make full use of special invoices for rare earths, and promptly investigate and deal with illegal and non-compliant cases based on leads from public reports. For local government departments found to have conducted inspections but failed to impose penalties or delayed action through procrastination and buck-passing, we will implement named-list supervision and hold relevant personnel accountable. Second, we should leverage the role of the rare earth industry associations by forming dedicated teams to promptly verify leads related to illegal and non-compliant activities involving rare earths, thereby establishing a regular, systematic working mechanism. Third, we should encourage news media to intensify their exposure of typical cases, thereby deterring and cracking down on criminal elements. Fourth, we must accelerate the promulgation of the “Regulations on the Administration of Rare Metals” to provide legal safeguards for combating illegal and non-compliant activities involving rare earths. We must also conduct timely inspections to identify and address any illegal or non-compliant restrictions on rare earths.

　　Increasing rare earths “ Crack down on organized crime ” At the same time, Xin Guobin pointed out that our country... 6 The establishment of the major rare earth group should also be accelerated, with efforts focused on achieving substantive integration and restructuring to ensure that all integration work is completed by the end of the year. 6 Large corporations must also earnestly shoulder their social responsibility of fostering fair competition and maintaining a stable market order.

　　Regarding the restructuring of China’s major rare-earth groups, reporters interviewed Zhang Zhong, General Manager of China Northern Rare Earth Group, and Li Zhuxing, Vice Chairman of Ganzhou Rare Earth Group, during the forum. Both stated that the two groups are expected to complete the integration of all enterprises within their respective regions by the end of this year.

　　While doing the above-mentioned tasks well, our country... “ 13th Five-Year Plan ” Work on rare-earth planning is also set to begin. According to Xin Guobin, the overall approach will be led by large rare-earth conglomerates, oriented toward strategic emerging industries and high-end manufacturing, with a focus on enhancing independent innovation capabilities and R&D technological levels. We will comprehensively develop a high-end rare-earth application industry, fostering several large, integrated rare-earth groups that boast world-class technology, advanced equipment, and strong international competitiveness. Additionally, we will establish a number of well-planned, orderly-divided industrial bases for rare-earth resource development, product processing, technological R&D, and high-end applications, striving to achieve the following by— “ 13th Five-Year Plan ” Finally, the rare earth industry as a whole has entered a development stage characterized primarily by high-end applications and high added value, fully realizing the strategic significance of rare earths.

　　As the “Rare Earth Capital” of China, Baotou has been entrusted with an even greater mission during this forum—becoming a pilot city for the transformation and upgrading of China’s national rare earth industry.