1. Has long been China's reserves first, production of the first, export the first, but no pricing

2. China's strategy of open earth, no longer do commodity-exporting countries, to encourage exports of processed products

3.2010-year export quota of 30,258 tons of rare earth, down 40% compared with 2009


Since entering in August, the long-brewing national RE strategy is speed.

Recently, the Inner Mongolia Autonomous Region issued a formal document, clear the whole autonomous region within the scope of strategic resources by the Baotou Rare Earth Iron and Steel (Group) Co., Ltd. exclusive; At the same time, the five southern provinces (Guangdong, Guangxi, Fujian, Jiangxi, Hunan,) 15 City signed the "15 cities in the five provinces south of Rare Earth Resources monitoring regional joint action program"; Minmetals Chamber of Commerce commissioned to convene on 13 major RE company held a forum to discuss the organization of work next year, the export of rare earth, rare earth export quota will be further reduced.

Ministry of Industry and Information Technology Deputy Director Cai-Feng Wang pointed out that the raw materials, China's export restrictions only for the rare earth rare earth raw materials, finished products but to encourage the export of rare earth. The statement also revealed the rare-earth strategy Guo Jia AIM: no longer do commodity-exporting country, but to introduce more of Shen processing technology, Mouqiuchanye chain discourse Quan.

As the Chinese Government to strengthen control of rare earth resources, previously heavily dependent on exports of developed countries, China's rare earth, deep-processing projects have started to go to China or elsewhere to find (restart) of rare earth resources.

Japan called on China to increase exports of rare earth

Many countries in Europe and America to protest China's rare earth strategy, China had one of the biggest beneficiaries of low-cost Earth Japan, also joined the "protest" among the camp.

Japanese officials last week urged that China should expand, not restrict the export of rare earth resources. Japan's trade ministry said that since China in July announced a reduction in the export of rare earth resources, a number of rare earth elements of the market prices have increased by 20%. Japan's trade ministry said: "Although other countries such as the United States also has a rare earth resources, but China is the only one relatively low price the production of power. However, since China issued a message Yi Lai, Xi Tu prices, brought skyrocketing."

As the rare-earth resources for the production of computers, mobile phones, low-carbon vehicles such booming industry in Japan is essential, therefore, China's rare earth limit sell orders, and will lead to higher prices for Japanese companies nervous. It is reported that officials of the Japanese House of Representatives and trade assistant provincial cabinet has been to China, to the relevant departments expressed concerns for the rare-earth prices, the Japanese side also hopes next week's Sino-Japanese economic talks, reiterated the request.

Currently the world's total reserves of rare earth resources, 88 million tons, of which China's rare earth reserves account for only 31% of the world, the CIS reserves accounted for 22% of the world, the United States accounted for 15%. China has 30% of global reserves, the supply of more than 95% of global demand, known as the "golden cabbage selling price." As China's rare earth prices low, the United States happy to shut down from 1985, his rare-earth mine, all imported from China; Japan imports a large number of Chinese Rare Earth hoarding.

Move the lower 40% quota of rare earth pricing

Chinese Rare Earth Society, according to Deputy Secretary-General Zhang Anwen said, in 2009, the Chinese rare earth production of 124,800 tons, the supply of more than 95% of global demand. Besides China, last year Russia produced 2,470 tons of rare earth, the United States 1700 tons, India 50 tons. Although China's rare earth reserves first, production of the first, export the first, but did not get the pricing power of rare earth.

However, rare earth application in the industrial field, but becoming increasingly prominent. Rare Earth is known as "industrial MSG", "the mother of new materials," reputation, excellent with rich light, electricity, magnetism, superconductivity, catalytic properties, widely used in advanced technology areas (such as new energy, national defense), is non-renewable strategic resource.

Therefore, the search for rare earth rare earth pricing strategies on a national key. China's "Father of Rare Earth," said Academician Xu Guangxian on the hope that the pricing power of Chinese earth, a substantial increase in RE prices, the real economies of China rare earth industry, and to master the world of rare earth become the key to future high-tech development.

Baotou City, Inner Mongolia Autonomous Region (Rare Earth Capital), a government official said the resource-rich region would like to enter more profitable downstream processing industry, do not want to just provide raw materials; China does not want to always be the world's factory.

Reduce the export quota, is an important means of seeking to earth pricing. Beginning in 2007, China has gradually reduced the export quota of rare earth, rare earth prices are therefore correspondingly. In 2009, China's rare earth export quota of 5 million tons, and this year the Ministry of Commerce has issued a rare earth export quota of 30,258 tons as compared to 40% decline in 2009.

August 13, Ministry of Commerce Chamber of Commerce to convene the major rare earth Minmetals company held a forum to discuss the organization of work next year, the export of rare earth, rare earth export quota will be further reduced. Relevant departments in Japan last week to China for consultation, is to reduce export quotas expressed concerns and seek solutions.

North and South divided rare earth strategy appeared

Rare Earth in China is mainly distributed in Inner Mongolia in the north and the south five provinces to the north of rare earth Pr, Nd, etc, the mineral the south by the Sino-yttrium and rich europium-based mineral-based. "RE Father," Xu Guangxian, hopes to strengthen the core of the North Baotou Rare Earth Group and Minmetals Corporation as the core to the south of Rare Earth Group, the two groups to enhance collaboration and strengthen the Chinese rare earth industry.

Relevant government departments from the current initiatives of view, Guangxian of this vision is becoming reality.
Earlier this year, formally announced the implementation of Baotou Rare Earth Products Rare Earth Materials strategic reserve program, and be autonomous, Baotou, Baotou Steel (Group) Company common to discount the support of the construction of 10 total reserves exceeding 200,000 tons reserves of rare earth oxides facilities. According to the Minister of Planning and Development Baotou Steel Group, Liu Zhihong introduced recently, Inner Mongolia Autonomous Region has formally issued a document, clear the whole autonomous region within the scope of strategic resources by the Baotou Rare Earth Iron and Steel (Group) Co., Ltd. franchise.

Relative to the northern Inner Mongolia Baotou Rare Earth mainly in the south wider distribution of rare earth, mining easy, rare earth companies are more difficult, therefore a corresponding greater integration. August 10, the five provinces south of 15 cities signed the "Southern Five Provinces 15 City RE development program of monitoring the regional joint action." Under the program, the implementation of the joint regulatory action in business is "to explore and establish a unified platform for electronic trading of rare earth minerals such as to enhance the combined effect of the regional mining industry; strengthen self-discipline to form a joint consultation between enterprises the pricing mechanism of rare earth minerals and mineral allocation mechanism . "

Chinese Academy of Sciences Fellow of rare earth resources, Guang-Yan pointed out that the north of Mining header control in recent years has achieved certain results, carried out the linkage mechanism to increase the South of rare earth protection, from a national perspective, the protection of rare earth in the search for balance between north and south.

News

Foreign enterprises

Busy looking for alternative resources

Rare Earth products by price, China reduced the export quota of rare earth and rare earth products to combat smuggling and other factors, some foreign companies have started to look for sources outside China Rare Earth to ease supply pressures. The United States has recently begun preparations for molybdenum recovery Mountain Pass rare earth mine development work (mine is the largest rare earth mine, closed 20 years ago), expected annual capacity of 1 million metric tons, and is expected in the next two to three years production. Meanwhile, Australia, Canada, Japan, Brazil, Kazakhstan, Vietnam, India and other countries have also implemented or preparations, plans to develop rare earth ore.

Resolve

Into the direction of deep processing

It is understood that as technology advances, more and more extensive applications of rare earth in the new energy, new technologies, new materials able to accomplish much. Rare Earth is from the "industrial MSG" to "industrial food" change. Internationally, electric vehicles, wind engines, lighting, computer hard drives, mobile communications have to be a large number of applications of rare earth. However, China's rare earth deep-processing technology has lagged far behind Europe and the United States and other developed countries, only the export of primary products. Rare deep-processing sectors are huge profits to stay in a foreign country.

According to the China Engineering Vice President, Chairman of the Chinese Rare Earth Society Fellow dry Yong said, in order to promote the development of RE technologies, the state "12 5" plan will set up special funds for major rare earth, the ministry will be allocated from 300 million to 450 million yuan support the development of the use of rare earth. National Development and Reform Commission is also to the use of rare earth functional materials and industrialization, to discuss a national strategy, rare earth functional materials, luminescent materials may be used as a major strategic project to write "12 Five-Year" plan.

State Department of Industry and Cai-Feng Wang, deputy director of raw materials held in the recent "China Rare Earth Industry Forum" that "should concentrate efforts on a number of key technologies, and promote the industrialization of independent intellectual property rights, sustainable development of rare earth industry. "

Cai-Feng Wang said that China's export restrictions only for the rare earth rare earth raw materials, finished products but to encourage the export of rare earth. The implication is that policies to encourage foreign enterprises to deep processing of rare earth and set up factories in China to promote China's rare earth processing technology, the industry chain to seek the right to speak.

China's restrictions on the export of rare earth raw materials, measures have been effective. Baotou Steel Rare Earth (Group) Co., Ltd., general manager of high-tech Zhang Sun said that as a substantial reduction of rare earth export quota this year, the International users will face a shortage of about 20,000 tons of supplies. "A large number of foreign-funded enterprises is expected to begin this year, the factory moved to China Rare Earth." Everbright Securities analyst Li Min also reminded that foreign companies may face some resources supply risk, unless they decide to shift their production to China.

It is reported that in the Baotou Rare Earth High-tech foreign-funded enterprises operating in the region, about 50. Last Monday, the Korea Development Bank and the Baotou High-tech Zone signed a cooperation agreement, will lead the South Korean electronics manufacturer and automotive manufacturers to Baotou, independent or with the Chinese partner to establish rare earth plant. Japanese trading company Mitsui & Co., a management person in China, also said Japan's Mitsui & Co. is leading enterprises to invest in rare earth processing industries.