The rare earth industry in Inner Mongolia began a new round of reshuffle

Inner Mongolia Baotou Steel Group and the Inner Mongolia Autonomous Region 9 RE upstream companies and shareholders signed the " integration and restructuring agreements ." Baotou Steel Rare Earth Group in accordance with the policies of the franchise and related franchise , the nine companies into the franchise system of Inner Mongolia Rare Earth .

The move was interpreted by the industry as an important progress in the integration of rare earth north before the New Year , and is considered to be the beginning of a new round of rare earth industry reshuffle . At the same time caused widespread concern , the industry has also brought new expectations for the performance of this sector in 2014 .

The difficult process of restructuring

9 Company and its shareholders undertake to accept and obey the management system by the Baotou Steel Rare Earth Group specializing in Inner Mongolia People's Government and relevant departments to develop , in strict accordance with the national mandatory plan for production operations.

It is worth noting that, by the end of December 2012 , the Inner Mongolia Baotou Steel Group and 12 upstream rare earth companies signed a "rare earth upstream integration and restructuring of the framework agreement ."

The formal signing of the restructuring agreement was reduced to nine the number of enterprises , there are three companies currently not signed a formal restructuring agreement with Baotou Steel Group .

In fact, from 2010 Inner Mongolia Autonomous Region government issued the "rare earth resources development order rectification work program " clearly within the scope of the autonomous region of rare earth exploration, mining , processing, smelting by the franchise since the Baotou Steel Group , Baotou Steel Rare Earth Group to integrate upstream enterprises in Inner Mongolia roads extremely difficult.

Inner Mongolia Autonomous Region Government in May 2011 issued a " rare earth upstream integration autonomous work out program ," requires the integration is completed at the end of June 2011 . Under this program, in addition to 4 regional level above furniture department in charge of the investment project approval document separation of rare earth smelting enterprises into the scope of the Baotou Rare Earth franchise , the rest of the more than 30 companies have all been compensated off and eliminated.

As it involves placement of workers , corporate compensation and other issues, the controversial program , for shutting down slowly. In early 2012, regional authorities eliminated on consolidation program was re- adjustment , the new program of cooperation in the restructuring of enterprises, the number of firms and compensation Close Close -out companies have changed.

There are the rare earth industry analysts pointed out , Inner Mongolia Rare Earth upstream corporate restructuring process is slow mainly because of difficulty, to the interests of all parties involved , a larger number of initial investment capital needs . Some environmental pressures faced by various enterprises , some busy out of production , restructuring more difficult .

Refractory industry chaos

Not only in Inner Mongolia, China 's rare earth industry is accelerating consolidation.

As early as 2011 , the State Council had issued the "Opinions promote sustained and healthy development of rare earth industry ," the basic requirements of large enterprises led to the formation of the rare earth industry pattern. The program consists of a large group of rare earth according to the Ministry of Information Industry led the development of the country 's rare earth industry to form a " 1 +5 " pattern .

In fact, the rare earth industry consolidation on the one hand is the international competition , while also being intensified rare chaos "forced " out.

Secretary-General of China Rare Earth Industry Association马荣璋has said over the years the domestic rare earth industry chain rampant black , because there is no clear definition of illegal corporate standards , resulting in combating difficult.

Recently, in Baotou, Inner Mongolia , Customs cracked a major smuggling of rare earth together , the city is not a private company to issue VAT invoice price will be 6 batches of rare earth products have illegally sold to a company in Vietnam . Involved more than 130 tons of rare earth products , and the total value of tax evasion involving 1,400 million.

It is understood that the rare earth mine in northern tonne resource tax in 5000 to 14,000 yuan , the South mine in 6000 to 36,000 yuan , plus various taxes and resource taxes accounted for more than 50% of the sales price of rare earth ore , and private dug potential illegal products do not need to pay tax fee , has a great price advantage.

It is a little early to statistics, in 2012 the amount of illegal mineral nationwide more than 40,000 tons of rare earth , illegal smelting products more than 50,000 tons , the export smuggling phenomenon in some places more prominent.

Zhang said that illegal mining activities and processing , sales and export of rare earth rampant , is a cancer affecting the healthy development of rare earth industry in China , since 2012 rare earth prices continued to slump, a lot of impact "Black RE " The market is a major reason.

Will usher in a new round of reshuffle

China Rare Earth Measured Resource once accounted for nearly 90 % of the world 's rare earth industry has developed rapidly , fame . Today, on the middle reaches of China 's rare earth industry areas such as the separation of rare earth smelting, alloy materials have serious excess capacity .

Statistics show that China's rare earth separation smelting enterprises have more than 110 , with an annual capacity of about 300,000 tons , but in 2012 a legal separation of rare earth smelting products output in China is only 82,000 tons in recent years, the annual global consumption of rare earths is only 12 tons, integrated enterprise operating Chinese rare earth smelting separation rate of about 30%.

According to statistics , China's rare earth permanent magnet materials accounted for more than the ordinary amount of 80% , high- quality specialty rare earth permanent magnet materials only about 10%, and the basic domestic rare earth permanent magnet products for the domestic market , the proportion of exports in the international market for less than 20% .

In this multi- context, clad with nine companies signed the restructuring agreement of extraordinary significance . Insiders predict that in 2014 the pace of restructuring of Baotou Steel Rare Earth may be further accelerated.

Has signed a restructuring agreement nine companies still need to fully meet the requirements of listed companies have certain conditions in operations, financial management , environmental standards , etc., to improve their level of standardized management by its own management and technical advantages of Baotou Steel Rare Earth , Help nine companies as soon as possible environmental standards and standardized operation , eventually becoming Baotou Steel rare Earth Holdings business.

Inner Mongolia Academy of Social Sciences Institute of Economics in light military researchers believe , Baotou Steel Group to integrate deeper meaning nine rare earth upstream companies that change the structure of exports of rare earth products , the formation of a greater competitive advantage and consistent export policy is expected to change RE export for many years refractory disorderly competition .

Insiders predict that certain of rare earths in the country after the integration of a large group , the next production quotas of rare earth industry , mandatory plan , the new mining permits and other policies, the general will tilt to several large groups . Upstream resources and production targets which means that the domestic rare earth ore and smelting separation , will be further concentrated to a large group of rare earth industry will usher in a new round of reshuffle .


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