Rare scattered towards the era of large groups

In conjunction with the Ministry of Land and Resources , the SASAC and other departments and throughout the 12 main producing areas of rare earths authorities held a formation of large enterprise groups rare special meeting in Beijing . The meeting passed disclose information indicates that China's rare earth industry mergers and acquisitions has made ​​positive progress , a large group of rare earth era has been created . In fact , as early as May 2011 , the State Council had issued " Opinions on Promoting the sustainable and healthy development of rare earth industry " ( referred to as " 22 States " ) , required to actively promote the rare earth industry mergers and acquisitions, adjust and optimize the industrial structure. So, more than two years , the progress of China's rare earth industry mergers and acquisitions ? Current integrate what problems still exist ? The next step will be how the government and businesses to promote this work ? Reporter conducted a survey interview.

Su Bo , vice minister of the Ministry of Industry in the interview with this reporter , said , according to the requirements of the State Council , the Ministry together with relevant departments on the basis of in-depth investigation, the study proposes the formation of a number of large-scale program of rare earth group . More than two years , the progress of the rare earth industry mergers and acquisitions is good, according to the law of survival of the fittest market , currently has basically formed a six -led business development of the industry structure, key enterprises have control about 99% of the country 's rare earth resources, minerals and smelting separation production capacity of 81% and accounted for 61.5% of the country, a substantial increase in industrial concentration , the industry generally maintained a good momentum of development.

"Before integration and restructuring , China's rare earth industry in the long-term layout small scattered , low-level redundant construction over , industry concentration is low , vicious competition tragic state of the industry . Thus, despite the global market supply of more than 90% of rare earth resources, but still can not grasp the international pricing . Chaos often happens is that foreign companies get a contract orders inquiry to domestic enterprises , leading to lower prices among competing companies , severely weakened the competitiveness of China's rare earth resources sector. "Zhang Yin told reporters.

" rare earth upstream business, for example , a total of nearly 130 domestic enterprises , with an annual capacity of rare earth oxide equivalent to more than 300,000 tons , far greater than the total annual world demand of about 15 million tonnes. "Zhang Yin said," Therefore, accelerating enterprise integration, increased industrial concentration is the only way . The good news is that since 2011 , China's rare earth industry , market, etc major policy changes , especially ' 22 country ' after the introduction of the rare earth industry consolidation and restructuring of a breakthrough , industry structure and therefore significant changes . "

Zhang Yin analysts believe that the country 's integration and restructuring plan intended to improve industry concentration, the realization of large enterprises as the leading rare earth industry structure , build a resource orderly development, protect the environment , improve the industrial chain of rare earth industry development pattern and real change Over the years the small scattered rare condition . From the local perspective, the past three years , Inner Mongolia, Jiangxi, Fujian, Guangdong and other places have established a regional rare earth industry group , industry concentration initially improved, for the formation of large-scale enterprise group laid the foundation rare .

Change " Let me rephrase " to " I want to reorganization "

Despite the rare earth industry mergers and acquisitions work long road , but industry experts believe that in the interview , "1 +5" large group led pattern is a general trend , the next step will focus on supporting countries which promote the integration of six companies re- merger , the formation of large rare earth enterprise Group . In addition , under the governance of excess capacity in the background, the production of rare earth in the field of energy will also face redistributed. Currently, the implementation of the rare earth " State 22 " The work has entered a crucial stage , speeding up the adjustment of industrial policy and regulate the industry work is very urgent.

Zhang Yin , Qi Xiong , Huyao Bin , and many people in the industry said that the establishment of large-scale enterprise group of rare earth , can effectively enhance the industry of industrial concentration , dumping, excessive and indiscriminate digging , smuggling and sale of such phenomena is expected to be cured . Exit backward production capacity of SMEs , but also to reverse the ecological pattern of the entire industry , conducive to the stability of rare earth prices, market competitiveness and international discourse of China's rare earth industry will be greatly improved.

The next step will be how to promote the country on the rare earth industry mergers and acquisitions integration , said Su Bo , general guiding principle is to thoroughly implement the party's 18 , 22 eighth plenary meeting, the Central Economic Work Conference and the "National " proposed tasks, give full play to the decisive role of the market in allocating resources , and business-oriented , diversified investment, market -oriented operation ; played the role of good government , a combination of economic , technical, legal and necessary administrative means to eliminate system institutional barriers , make the best use to promote mergers and acquisitions, corporate formation of both internal incentive , another external regulatory policy system of accountability to promote mergers and acquisitions changed from "Let me rephrase " to " I want to reorganization ."

Su Bo also pointed out that the main measures next large group of rare earth industry mergers and acquisitions . First, mergers and acquisitions work must be clear responsibility of the government , enterprises and departments. Local governments should establish coordination mechanisms play a decisive role of the market in resource allocation , and mergers and acquisitions in the region of unified planning work . To remove institutional hurdles , and resolutely crack down illegal rare earth mining, production and circulation behavior. Secondly , coordinating off, converting, staffing , maintenance, major issues of social stability , and support for the central enterprises and other groups to carry out cross-regional mergers and acquisitions work . Led enterprises to earnestly implement the integration , commitment to corporate consolidation, employee relocation , debt disposal , financial compensation and other responsibilities. Again , a clear relationship between equity and improve the corporate governance structure ; strictly enforce the state of the management system , and other groups to jointly safeguard the overall interests of the industry and the market order . State Council departments will resolutely crack down on illegal mining, production , protecting resources and the environment , the implementation of supportive policies , strengthen the legal system , to create the external environment of fair competition for mergers and acquisitions and corporate development .

Su Bo stressed that the next state will strengthen the management of the rare earth industry . First, to further establish a sound legal system and regulatory system, revised and improved as soon as possible , " Rare Management Ordinance ( draft ) " , to fight as soon as possible ; Second, the depth rectification of the rare earth industry , the fight against illegal exploitation of rare earth production and circulation of work normalization ; the third is to actively promote technological progress and industrial upgrading ; fourth is a large group of rare earth enterprises should play a leading role in the implementation of national policies to maintain market order , the development of industry and other high-end applications , is an important contribution to the development of rare earth industry .

Industry experts also suggested that , on one hand , a large group in the mergers and acquisitions process, the government should establish and perfect for small and medium private enterprises , individual investors exit mechanism , but also the flow of SMEs , the "Let me rephrase " transfiguration "I want to restructuring" , as an opportunity to upgrade ; on the other hand , with the rapid development of global scientific and technological progress and strategic emerging industries , the future of a long period of time, rare earth consumption will continue to grow , particularly in supply of heavy rare earths will become tighter . As rare earth supply big country, after China's large enterprise group pattern formation , the country needs through macro-control , we can not form a rare earth products of excess supply , causing prices dropped significantly, nor excessive control over the resource-rich light rare earth production, loss of markets, in order to maintain our healthy and stable development of rare earth industry .


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