China's rare earth groups to accelerate restructuring
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E-mail CRI, January 29, 2015
China's six major rare earth groups will complete substantial integration of small mines and smelting companies by the end of 2015.
The six groups are Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Company, Aluminum Corp of China, Xiamen Tungsten Company, China Minmetals Corporation, Ganzhou Rare Earth Group, and Guangdong Rare Earth Group.
The six producers control 94 percent of China's total rare earth resources and 75 percent of the mines. Meanwhile, their smelting and separating capacity account for nearly 60 percent of the total.
Su Bo, Vice Minister of Industry and Information Technology, says the move aims to better manage the country's rare earth resources.
"There are now over 100 rare earth-related companies in China. Rare earth resources are very precious and we need big groups to improve the efficiency of development. The six groups will regulate the smaller companies to get rid of such problems as rampant illegal production, environmental disruption and the destruction of resources."
Su Bo said China will continue to control strictly the number of new projects related to rare earth development, smelting, and separating and will not approve projects submitted by enterprises beyond the six groups.Su Bo said China will continue to control strictly the number of new projects related to rare earth development, smelting, and separating and will not approve projects submitted by enterprises beyond the six groups.
China has scrapped its quota system restricting exports of rare earth minerals. The change was detailed in China's Ministry of Commerce trade guidelines, issued at the end of December.
Under the new guidelines, rare earths will still require an export license but the amount that can be sold abroad will no longer be covered by a quota.
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