RE rectify the leadership of the State Council to give special instructions 1 + 5 program intensified reshuffle

Eight ministries jointly issued a document remediation rare earth industry, under attack "black rare," the storm, the industry companies are also GeZongLianHeng seize resources.

October 13 evening, Hongda Industrial announcement, said the proposed acquisition of Baotou City of Mao 100% stake in rare earths and rare earths in Baotou City, voted to build deep processing and application industry chain project. At the same time, as a large group of rare earth north strong contender, Baotou Steel Rare Earth also announced the same day, signed an agreement with Hongda Industry, and to get 0.4% stake in Gansu Rare Earth.

It is worth noting that in the industry the company actively layout for more upstream resources, the new policy also allows a large number of capacity threshold standards of the company had failed to eliminate this.

Ministry in August this year, released in 2014 industries and eliminate backward and excess capacity in the list of enterprises (second batch), involving a total including steel, iron alloy, copper smelting, lead-acid batteries, rare earth and other dozens of industry total 132 enterprises, of which, rare earth enterprises a total of 28.

When the rare earth industry to accept more than 21 Century Business Herald reporter said, as formulated by the Ministry early this year, "a + 5" program to promote large Rare Earth Group, the current mergers and acquisitions of domestic rare earth industry has undoubtedly been heating up, six large rare earth giants of the industry structure has also been previews profile.

"Now the north and south of the rare earth companies are seeking ways to get more resources, at the same time, local governments also have their own demands, coupled with the regulatory authorities also launched a new round of campaigns, 'shuffle' storm of the industry will continue. "Baotou rare Earth, a company executive told the 21st Century Business Herald reporter.

Help reverse the industrial decline

MLR official website shows, recently, the Ministry of Public Security, the Department of Homeland eight ministries jointly issued a document, the decision since October 2014 to March 2015 31 日 in the fight against illegal rare earth mining, production, distribution, export and other four links special action law violations. RE focus on priority areas also investigated 2-3 typical cases according to invoices and reports and other clues.

According to the implementation plan, the special action will be divided into self-examination period (2014 年 October 10 to November 25), the rectification period (November 26 to January 31, 2015), the acceptance period (2015 February 1 to March 31) in three stages.

China Rare Earth Association, said that China's rare earth export policy is facing a change, this time eight ministries together again to rectify the rare earth industry, and it lasts up to six months will help reverse the current rare earth prices decline.

"On one hand there is the impact of rare earth prices declining overseas demand, but illegal mining, smuggling is another key factor leading to falling prices, although last eight ministries have jointly rectify once, but because in some areas of local government resources supervision, execution ineffective, illegal trading and processing of tax evasion and other phenomena can never stop. "The Chinese rare Earth Society sources said.

21st Century Business Herald, the latest data available show that from January to August this year, China's total exports of 18,700 tons of rare earth, representing cumulative growth of 39%, the growth rate continued to slow. And after the National Day, the severity of rare earth oxide prices fell 2.01 percent and 2.03 percent respectively, the main varieties of praseodymium, neodymium, dysprosium, terbium, europium, cerium, lanthanum, 2014, respectively, is down 4.1%, 18.55%, 30.14%, 48.35 %, 39.58%, 35.42%, the highest year lows.

In fact, since 2010, rare earth prices began to fall sharply, the North leading companies also had to shut down the Baotou Rare Earth to seek ways to protect the price, but even so, in the private sector dig Luancai, smuggling and other illegal chaos intensified, the informal enterprises living space has thus suffered a severe squeeze, and continues today.

2012 Ministry has spearheaded several special rectification actions were destroyed illegal mining of rare earth 14 points, closed beneficiation, smelting and separation enterprises 20, off discontinued capacity of about 30,000 tons, but not completely cut except sword remediation industry chaos unplanned exploration and production of rare earth still impact on the normal market order.

One year later, in 2013, the Ministry of many ministries together again resorted to "corrective order" short-term rebound after rare-earth prices, the illegal exploitation of other phenomena, reappeared in several major domestic resource gathering area in Jiangxi, Inner Mongolia, Sichuan.

And compared to the previous two to rectify the Association, who then told reporters that the rectification has been led by the State Council, special instructions, also called an unprecedented reform efforts, in addition, the source also revealed that, at this stage, regulators are preparing to introduce "rare management Regulations", but also the legal aspects of the ordinance will promote regulatory rare earth industry to establish long-term mechanism.

Multi-pronged "beachhead"

In addition to industry-specific consolidation, mergers and acquisitions and a large group of rare earth strategy is also accelerating.

The announcement from Hongda Industry shows that the company intends to invest in Baotou City "rare earth deep processing and application industry chain" project, through the integration of new or existing production enterprises in Baotou City, annual production capacity of 100,000 tons of rare earth additives and catalysts, an annual output of 1,000 tons of rare earth pigments and other production projects.

And in order to obtain the rare earth material supply, Hongda Industrial respectively Baotou Rare Earth Co., Ltd. of Mao and all shareholders signed a "letter of intent", and Baotou Steel shares (2.88,0.02,0.70%) signed a "strategic cooperation framework agreement "and the Baotou rare Earth signed a" strategic cooperation agreement rare earth industry. "Under the agreement, the company intends to acquire up to 100% stake in rare earths Mao and Mao RE investment through the establishment of a new processing plant in Baotou Steel shares Barun area, Baotou Steel shares to the company promised to provide about 200,000 tons of iron ore per year. In addition, Hongda Industrial will after the acquisition of a wholly-owned mao 20% stake in rare earths and Mao held up some 0.4 percent stake in Gansu Rare Earth Rare Earth New Materials Co., Ltd give Baotou Rare Earth, Baotou Steel Rare Earth places supply of raw materials, access to the market as the price, and promised to provide 20,000 tons of rare earth concentrates of rare earth after integration of Mao annually.

In fact, Hongda Industrial and Rare-Earth is the rare earth industry is just the left and right, one company representative sudden.

21st Century Business Herald reporter learned that, as the rare earth market in southern Another key enterprises, Sheng and resources (20.58, -0.24, -1.15%) also last month and Arafura Resources Ltd. signed a "Memorandum of Understanding" the two sides will also conduct in-depth negotiations once again within the valid period of the memorandum, promote the establishment of cooperative relations.

"In accordance with requirements of the Ministry of Industry, before the end of this year to complete all the integration work large rare earth group, so in the final stage, we are all means to snatch the right to speak." Above the Baotou Rare Earth business people told 21st Century Business Herald reporter.
 

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