The regulatory layer discusses the rare earth export quota system

After more than three years of industry rectification, China's rare earth industry has moved from scattered to concentrated, but China has encountered new troubles in the management of rare earth exports related to the development direction of domestic enterprises. In March of this year, Western countries represented by the United States, Japan, and the European Union have already sued China at the World Trade Organization, requesting relevant WTO organizations to investigate China's rare earth export quota system, and its appeal is to restore trade freedom for rare earth exports. At the same time, many domestic business owners and industry experts have called for the cancellation of the rare earth export quota system. They believe that the rare earth export quota system not only breeds industry corruption, but also harms the interests of enterprises. More importantly, this A system disguise encourages the smuggling of rare earths. On August 9th, the reporter learned from experts who participated in the relevant discussions that the management department has already discussed the future of the rare earth export quota system. The expert pointed out that once the rare earth export quota index system is cancelled, the future rare earth export management The work will fall directly to the integrated large enterprises. As long as the government implements the mandatory production plan, it can still manage the industry. On August 16, the reporter asked the Ministry of Commerce to verify the matter. As of the time of the press release, the Ministry of Commerce did not reply. Quota dilemma On August 9, an expert from the Baotou Steel Rare Earth Research Institute, who did not want to be named, told reporters that the management department has organized discussions on the issue of the waste of the rare earth export quota system. Experts are currently giving the Ministry of Industry and Information Technology Suggestions, "This (quota) system has been engaged for so many years, forming a pattern of interests. To move it, not only faces the obstruction of some people, but also comprehensively assesses the impact on the market." The rare earth export quota for 2011 was 30,184 tons. However, the actual export only used 18,600 tons (contracted 17279 tons of rare earth oxides), accounting for 61.6% of the total quota. Customs statistics export volume (equivalent to rare earth oxides) accounted for 17.83% of the total annual output of 96,900 tons in 2011, of which Japan accounted for 56%, the United States accounted for 14%, and France accounted for 10%. On August 8, Ma Rongzhen, secretary general of China Rare Earth Industry Association, told reporters that the overseas rare earth import statistics in 2011 were 1.2 times that of customs export statistics. Although the rare earth export quota system has become stricter, smuggling has never been eliminated. Closely related to smuggling is the private mining of domestic mines. According to the data provided by Ma Rongzhen, in 2011, the actual production of rare earth mineral products was 84,900 tons, which was less than the production plan of 93,800 tons of rare earth mineral products in 2011. However, the reporter learned from the Baotou Rare Earth community that in 2011, the actual collection of rare earth mineral products was far greater than the official statistics, and even larger than the amount of smuggling. On the one hand, the export quota for rare earths has not been used up, and on the other hand, it is smuggling. The industry believes that under such a status quo, the rare earth export quota has actually fallen into a very embarrassing situation. The original intention of the rare earth export quota system, which was implemented in 1999, was to limit the uncontrolled outflow of rare earth resources. In 2006, it was combined with a mandatory production plan to control it from the source. The direct consequence of the superposition of the two policies is that the price of rare earth has soared. In the first half of 2011, the price of rare earth began to threaten the survival of domestic rare earth enterprises. As early as 2004, there was discussion about whether the rare earth quota system continued. The reason was that since 2005, China has substantially implemented its commitment to join the World Trade Organization, and rare earths are not among the protected mineral resources. In fact, in the eyes of many business people, the quota system that has been implemented for more than 10 years has become a hotbed of corruption to a large extent. For a long time, many enterprises that have been assigned to export quota indicators do not produce rare earths at all, but instead transfer high prices to enterprises with export demand. Before the second half of 2010, the “quotes” for the transfer of rare earth export quotas are generally in each ton. Between 1 and 50,000 yuan, during the first half of 2011, during the surge in rare earth prices, the price of rare earth export quotas once soared to 500,000 yuan per ton. Subsequently, all the way down to the current no one cares. Supply diversification pressure "In the next three years, the global rare earth supply pattern will undergo great changes, and China's current status will change accordingly." August 9th, US Molybdenum Executive Vice President Douglas J. Jackson told this reporter It said that Molybdenum Company is faster than the outside world in establishing production lines and strengthening environmental protection. Douglas J.Jackson publicly stated at the Baotou Rare Earth Forum that Molybdenum will build an annual production capacity of 19,000 tons of rare earth capacity by the end of 2012. By mid-2013, Molybdenum's rare earth capacity will reach 40,000 tons, but it will be fully loaded. It depends on the needs of the market. Throughout 2011, China's actual production of rare earth minerals was 84,900 tons. If China's output remains unchanged, in 2013, the US's rare earth resources will reach half of China's, and the world's rare earth resource supply pattern will change dramatically. However, many domestic entrepreneurs are skeptical about Molybdenum's production plan. Jiang Suguo, general manager of Sichuan Yuanhe Mining Co., Ltd. believes that Molybdenum's plan is to confuse Chinese companies. The real purpose is to seek cooperation with Chinese companies. In the field of mining and smelting, the technological advantages of Chinese enterprises are obvious, and the environmental protection of rare earths is a problem. It is unbelievable that Molybdenum has reached 40,000 tons of production capacity in such a short period of time. In addition, for the heavy rare earth problem that is widely concerned about the outside world, Douglas J. Jackson said that Moore's Mountain Pass project contains heavy rare earths, so China's shortage of heavy rare earth supply will be alleviated in the future. The head of the Welde Rare Earth Project under the Australian Lener Company has a similar statement. Wang Zhongshan, chairman of the Nanjing Rare Earth Application Society, told reporters that geological exploration in recent years has shown that medium-heavy rare earths are not unique to China, but they are formed in different ways. Foreign medium-earth rare earths are not as high in quality as Chinese ion-type rare earths. The difficulty is also greater, so China's position on the medium-heavy rare earth is difficult to change in the short term. Dudley J. Kingsnorth, executive director of Australian Industrial Minerals, believes that no matter how fast the rare earth projects outside China are progressing, “it is extremely worrying to get enough heavy rare earths.” The reporter learned that in addition to the United States and Australia, South Africa has already started. Beginning in the development of medium and heavy rare earths, the Zander Corpus Dreyfus Rare Earth Project, which is being opened by South Africa's remote company, is a typical heavy rare earth project with an oxide reserve of 950,000 tons. The heavy responsibility of foreign companies will be exploited in the future. Chinese enterprises need to go out and exchange and cooperate with them. It is also a very realistic problem for China to obtain heavy rare earths from abroad.” A person in charge of a rare earth separation enterprise in Ganzhou, Jiangxi Province told reporters. Before 2012, the industry’s call for the liberalization of the export quota system was limited to light rare earths. For heavy rare earths, it is still hoped that quotas will be restricted. However, the business community now hopes to release the export of heavy rare earths at the same time. In addition to changes in market demand, there are also integrated the reason. The above experts told reporters that the export quota system itself is a transitional policy and it is impossible to continue. Now the integration of the domestic rare earth industry has achieved great results, the concentration of resources has increased, and the number of enterprises has been much less. Macro management is easier and needs to consider exiting direct intervention in the industry. During the Baotou Rare Earth Forum, the entrepreneurs interviewed believed that in the future, large enterprise groups could completely manage the export of rare earths, and did not need export quotas, such as the administrative system with strong administrative intervention. Insiders pointed out that the source of smuggling comes from the domestic super-planning mining, as long as the source is managed, the export can be handed over to the enterprise. On August 8, Su Bo, deputy director of the Ministry of Industry and Information Technology, said that at present, the pattern of rare earth enterprises led by rare earth enterprises has taken shape. Inner Mongolia, Guangdong and Fujian have basically completed the merger and reorganization of rare earth resources in the region and the smelting enterprises. The first-class rare earth enterprise group, China Wuhua, Chinalco and other central enterprises have also accelerated the merger and reorganization, forming a large-scale comprehensive enterprise group integrating technology research and development, smelting and separation, processing and application, with the deepening of industrial integration work. Advance, the pattern of large-scale enterprise groups leading the development of rare earth industry will gradually take shape.

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