Crack the problem of rare earth industry consolidation, the key is to coordinate the interests of each subject

Rare earth is an important strategic non-renewable resources, new energy, new materials, environmental protection , aerospace, electronic information and other necessary materials required for the development field . To 23 percent of rare earth resources to meet more than 90% of the world market share of supply , but did not get the rare earth pricing. Meanwhile , the rare earth industry, there are disorderly exploitation , environmental destruction , and many other issues , industry concentration is low , serious waste of resources , the industry urgently consolidation. In this regard, on August 8 this year, the Fifth China Baotou Rare Earth Industry Forum , experts put forward valuable suggestions to accelerate the formation of rare-earth problems of large enterprise groups has once again aroused concern to the industry . Objectively speaking , the current effect of rare earth industry consolidation and national expectations there is a certain gap. Analyzes the current challenges facing the deep-seated reasons behind the power of rare earth industry consolidation is continuing to go down the road to the key .

First, although the rare earth industry consolidation started early but falter

As early as 2002 , the State Council has agreed in principle to the former State Economic and Trade Commission and other agencies reported " on the formation of a national rare earth enterprise group instructions" , approved the formation of the South , the North Rare Earth Group . However, due to issues such as operations and coordination of interests , scheduled for May 2003 was set up in the north RE Group is unable to set up , and then Southern Rare Earth Group organization is also no news. Until May 2011 the State Council issued " on the promotion of sustained and healthy development of rare earth industry, a number of opinions" ( hereinafter referred to as "Opinion" ) , China's rare earth industry, large-scale integration to start again . "Opinions" in 1-2 years' time , the basic formation of large-scale enterprises as the leading pattern of rare earth industry , the South ionic rare earth industry 's top three conglomerates industrial concentration above 80% . Subsequently, the Ministry of Industry , Development and Reform Commission and other 12 ministries and commissions in 2013 published " on accelerating merger and reorganization of enterprises in key industries guidance" ( hereinafter referred to as "guidance" ) . "Guidance " in the proposed rare earth industry to support large enterprises with capital as a link, through association, merger , reorganization , etc., vigorously promote the integration of resources , significantly reducing rare earth mining and smelting separation number of enterprises, improve industrial concentration , the basic form to large enterprises as the leading industry pattern .

Rare earth industry development and distribution of rare earth resources in the country closely . China's rare earth resources and the distribution of rare earth enterprises exist North-South differences . Specifically , China's rare earth resources distribution generally shows "North Light south heavy " pattern, which are mainly distributed in light rare earth ore Baotou, Inner Mongolia and other northern regions and Sichuan Liangshan , ionic heavy rare earth ore are mainly distributed in Ganzhou, Jiangxi , Longyan , Fujian and other southern regions. In the north of Baotou Steel Rare- earth Enterprises a single large, while the South ionic heavy rare earth resources is more scattered , rare earth enterprises in larger quantities and considerable strength .

After two years of industry consolidation , South and North China rare earth industry is currently showing distinct progress . North of rare earth industry consolidation steadily. Baotou Steel Rare Earth in December 2012 and the Inner Mongolia Autonomous Region 12 RE upstream companies and shareholders signed the "rare earth upstream business integration and restructuring of the Framework Agreement ," while also actively absorb Shandong, Sichuan and Gansu Rare Earth Group enterprises set up big . Southern provinces involved in the rare earth industry and business are more fully integrated faced with certain difficulties. Places were set up in various provinces of rare earth group of companies , in order to integrate their respective rare earth industry within the region . Guangdong, Fujian , Hunan, Jiangxi Province has set up four Rare Earth Industry Group , Guangdong Province , Fujian Province, rare earth ( Group ) Co., Ltd. , Hunan Rare Earth Industry Group Co., Ltd. , Ganzhou Rare Earth Holdings Limited four large local conglomerates ( table 1 ) . Currently , the South 's rare earth industry, initially formed a group with four local businesses Minmetals , Chinalco Group , the color of shares three central enterprises to participate in the pattern.

Second, the rare earth industry consolidation difficulty is rooted in inter-enterprise , multi-level benefits of interregional coordination

At present , China's rare earth industry consolidation are facing difficulties , mainly local businesses , such as the main central business interests coordination problems. Specifically, these multi-level coordination of interests mainly from the following three aspects.

( A ) the distribution of interests between enterprises

In recent years, various regions have set up a large-scale enterprise group of rare earth in order to achieve the rare earth enterprises within the province and regional integration . However, due to the integration process in the distribution of benefits has not been straightened out, thus affecting the integration process.

First , large enterprises and the distribution of benefits between local SMEs, the contradiction . Subject to market fluctuations in demand and prices of rare earth and other factors , this contradiction will become more prominent , thus increasing the integration variables. How to protect the integrated enterprise investment, improve their participation in the integration process is the key . Rare in the north , for example, in December 2012 , Inner Mongolia Baotou Steel Rare Earth and Rare Earth 12 upstream companies signed the " rare earth upstream business integration and restructuring framework agreement ", although the framework agreement as a year's time , but no hard and fast reorganization and integration timetable. Currently, the reorganization and integration is still in business for 12 upstream stages of due diligence , integration and restructuring of the year will be difficult to achieve . If you have not signed a formal agreement within a year , the framework agreement will automatically lapse. How to be an objective assessment of the amount of integrated enterprise existing investments and to compensate , how to determine the reasonable amount of compensation , etc. , are the key factors affecting the integration process . Therefore, how to solve the contradiction between the distribution of benefits among enterprises , avoiding industry consolidation variables appear to accelerate the integration process of the rare earth industry , is the need to focus on resolving the issue.

Second, the provinces and the central place of business groups also exist between the interests of the corporate allocation problem . The problem of rare earth industry consolidation in the South during the performance of the ground is particularly evident. Southern provinces have been established where rare conglomerate , and began district of the province 's rare earth resources and industrial integration. Central enterprises are also actively involved in the South of rare earth industry consolidation . In the integration process , the two sides in the use of resources , production processes and other aspects of the distribution of interests , which may be to some extent affected the South of rare earth industry consolidation process.

( Two ) regional interests of the dispute

At present, Guangdong , Fujian, Jiangxi , Hunan and other four provinces have established Local Enterprise Group , to a certain extent, the area can promote the healthy development of rare earth industry , the South of rare earth industry has taken shape . However, due to different provinces and the development of ideas between policy differences in the various business groups out of self-interest considerations, competition between the inevitable. Provinces for their own economic development , there is a big project , repetitive impulse items , which will inevitably result in the rare earth industry overcapacity. This competition is not conducive to intensive use of rare earth resources , is not conducive to control the rare earth pricing .

( Three ) between the local and central level interests of the game

The problem in the South during the rare earth industry consolidation is more obvious . With the central enterprises cut local rare earth industry , the central enterprises benefit-oriented layout and the introduction of central enterprises and local governments will be generated between the original intention of the deviation . Local governments rely on raw material resources of central enterprises hope to develop new materials downstream sectors , which build the whole industry chain, to enhance the added value of the rare earth industry level ; while central enterprises have their own strategic layout , in some regions only be positioned as raw materials or rough base, this is the local government 's expectations are far apart. In the revenue side, the tax system by the current limit , the central enterprises to join to bring to the local tax increment limited , which resulted in the local government of the central enterprises to join the enthusiasm is not high , the long run , the central enterprises in the local development of space will become increasingly limited.

Third, on the rare earth industry consolidation proposal

For more on China's rare earth industry consolidation process there are three levels of benefits coordination problems , to accelerate industry consolidation , the proposed focus on the use of economic instruments to be adjusted .

( A ) economic leverage to play a role in coordinating the interests of enterprises

Recommends the introduction of the rare earth industry in the future integration of the implementation details protruding financial, taxation and other economic means of industry regulation. For positive suspend production for rectification , or shutting down backward production capacity of SMEs , according to their degree of contribution to the local economy ( to have to pay taxes for the standard ) to give different amounts of reward. Improving environmental taxes and corporate resources of rare earth resources management tax policy to improve environmental governance and compensation costs , increase backward production capacity of resources and environment expenditure costs. By the large enterprises, local governments and national co-financing to establish compensation fund mergers : the integration of large enterprise groups in a certain percentage of the sales revenue extracting a part of the local government based on the number of enterprises pay taxes supporting part , supporting part of the country . Directions include the use of funds to compensate for the annexation of SMEs solve business personnel placement , debt and other issues, the integration process due compensation market fluctuations rare opportunity for SMEs losses. Local government is responsible for fund management , the state industry department responsible for the fund and the integration effects assessment.

( Two ) to establish the South regular joint meetings between various groups of rare earth system , coordinating regional interests

By way of joint meetings between various groups , the establishment of inter-regional coordination mechanism for regular business operations to solve earth occurred during the relevant prices, output and other aspects of the controversy. Joint Meeting of the rare earth industry department is responsible for convening the meeting of the resolutions deal with regional produce Rare Earth Group has a strong binding. Rare earth industry authorities to annual regional Rare Earth Group 's operational efficiency assessment, and according to the appraisal , timely organization of regional Rare Earth Group consultation on related issues , the parties reached a satisfactory solution .

( Three ) clear central enterprises in the rare earth industry consolidation positioning , balance the interests of the local and central level

Balance of interests lies in the central enterprises to further develop research and innovation and other aspects of the unique advantages of the rare earth industry to clarify its role in the integration process . Encourage central enterprises to equity participation, etc. Rare Earth Group launched with the regional cooperation, while , for the protection of rare earth resources strategic security , strengthening central enterprises in the use of resources in the discourse. Encourage central enterprises to increase downstream rare earth new materials research and technological aspects of innovation, the promotion of local rare earth industry, the overall level of improvement. Support for the establishment of central enterprises in the local rare earth new materials research and industrial branches.


Rare Earth Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

• < Prev
• Next >