Recent rare earth prices rebounded, mainly due to production cuts and the fight against the illicit production and protect the price for. We believe that the current round of rare-earth prices rebound or will continue for some time, but not with the 2011 increase that round skyrocketing compared.

Recent rare earth prices rise bottom. Where: light rare earth (including: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium) rebounded by 5% -10%; heavy rare earth (including: terbium, dysprosium, 鈥, erbium, thulium, ytterbium, lutetium , scandium, yttrium) rebounded by 20% -30%. In terms of geographical distribution, the light rare earths are concentrated in the north and the heavy rare earth concentrated in the south.

Rare earth prices rebound this round main reasons: 1) since late June, Jiangxi Ganzhou campaign against "black earth" special action; 2) there is news that the Ministry of brewing promote RE downstream applications market policies, while the United multiministerial increase the comprehensive governance "black earth" efforts; 3) leading the Baotou Rare Earth rare Northern announced starting from July 1 cut half of its rare earths processing plant.

We believe that the current round of price increases or rare earths will continue for some time, but not with the 2011 increase that round skyrocketing compared. The main reason is: The current demand for downstream demand remained weak, especially magnetic materials, market expectations of future downstream demand is also very cautious, so cut down on illegal production and protect the price of price support efforts will be weakened. While in 2011 the entire earth relatively stable market supply and demand, policy stimulus has greatly improved and the market is expected to push up the market price.
 
A) a clear cut half a means to protect the price, but also reflects the demand is expected for the second half of the earth is poor; 2) Stop are active practices have been available raw materials inventory it will not affect the production plan; 3) speculate on the possible and promote the Northern restructuring related to: December 27 this year, "rare earth upstream business integration and restructuring framework agreement" will expire, if not before signing a formal agreement, restructuring fails. Select Mineral discontinued six months can effectively reduce the amount of concentrate supply, its effect is similar to water and electricity, is conducive to the smooth progress of restructuring.


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Recently, there is news that the State Ministry of many ministries to jointly conduct nationwide Rare remediation work, the current regulation scheme has entered the stage countersigned by the various ministries. It is understood that this regulation is still rare to combat the "black" rare earth-based, but the "anti" scope and intensity will be more than in past years.

In May this year, the Ministry had proposed a "new round of rare earths to rectify." After this, the first to Ganzhou rare earth industry consolidation: to develop a "Ganzhou Rare Earth Mining order rectification and supervision special action program." Ganzhou Rare Earth industry for remediation has launched nationwide Rare remediation work to lay a critical foundation.

Investment Advisor in the metallurgical industry researcher Yuan Zhibin that since smelting and separation capacity higher than the national overall targets stipulated rare earth mining, once the private mine checked, some lack of resources smelting companies may be forced to stop separation, while some companies have likely to accept higher prices of other rare earth ore. Meanwhile, the rectification work carried out will also allow traders to hoard goods will gradually strengthened, conduction through the layers after the rare earth industry for the whole industry chain will also be presented in terms of price expectations.

Insiders expect this year with the Ministry of illegal mining of rare earth remediation efforts to further strengthen the relevant cut-off will probably be able to further increase the total amount, which is to eliminate unhealthy competition in the entire industry, the formation of a large group of rare earth and other aspects can play a certain effect.

"For listed companies, involved in mining business performance is expected to be substantially improved, and as the demand for the downstream industry chain has not yet appeared significantly improved, so this will result in not involving mining companies there is a big operating results uncertainty. "Yuan Zhibin representation.

MIIT vice minister Su Bo had previously noted that the large enterprise groups to effectively assume rational development and utilization of resources, environmental protection, leading rare earth industry transformation and upgrading of responsibility, completely changed the industry scattered, chaotic, and poor production patterns, improve the rare earth industry core competitiveness .


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U.S. media broke the news that the United States some members mulls bill requiring the government to allow to increase domestic rare earth mining. U.S. Lawmakers said the move primarily to reduce dependence on Chinese rare earths to protect U.S. national security.

Under the Act, the U.S. approval authority must be made within 30 months of approval not to be unreasonably delaying approval. The debate in the House Rules Committee on Modi by explaining the purpose of the Bill, said the bill put forward is based on national security considerations and economic recovery.

Moment, pushing America to expand domestic rare earth mining behind the main factors: First, the market demand is huge. REE is manufactured rockets, computers, stealth aircraft, LED fluorescent tubes, and many other products indispensable raw materials. More importantly, rare earth manufacturing energy saving products is an important raw material, the United States to reduce dependence on fossil fuels, imported from overseas can not meet their own needs. "Forbes" magazine said the United States is sitting on the world's proven reserves of 15% of the earth, but the yield was less than 1% of the world, resulting in this production capacity and reserves within the United States do not match demand and is mainly due to government restrictions the exploitation of rare earth resources.

Second, out of its own military security considerations. United States, "Defense News" that the United States needed to develop sophisticated weapons, mostly from China Rare Earth and China to strengthen management of rare earth exports will likely threaten the United States military capabilities. U.S. military, military industrial enterprises and energy exploration companies have been used as a reason to lobby the government and Congress to expand the exploitation of local rare earth resources.

Third, control of the initiative in the field of rare earth new materials. Currently, rare earth new materials in the field of intellectual property rights for the United States and Europe are the main control. But with the rapid development of China's rare earth industry in China in the field of R & D capabilities on the rise. U.S. experts have put forward, in order to lead the development of rare earth new materials in the field, the United States must be an appropriate increase in extraction and mining, processing to achieve greater technological breakthroughs.

Fourth, for the technological development of the industry ahead of the layout. America's current pace of economic growth has returned, some of the new technologies to achieve breakthrough innovation led by the economic boom in the United States may once again appear. Moment, information technology, biotechnology and other technologies of the future will be the United States focus of industrial development, and rare is the application of these technologies provides the important basic materials. U.S. Magnetic Materials Association reported that rare earth mining the main issues, namely, the high cost of mining is very difficult to extract, the second is environmental pollution, to large-scale mining of rare earth resources in the United States, need to establish a chain, but it will take time . To meet the great development of the technology industry, the United States need ahead of the layout, and establish a domestic rare earth supply chain.

U.S. exports of rare earths on Chinese management practices dissatisfaction and concerns have not been eliminated in China on the issue of rare earth put more pressure on China to relax Rare management measures. The Chinese may be necessary to protect resources and environment considerations, continue to adhere to the current rare earth mining and export management measures. In the rare earth issue, Sino-US new collision and friction will be inevitable.


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Kotak Canadian mining company recently announced that the coastal Kwale district in Kenya found that approximately $ 62.4 billion worth of rare earth ore reserves. If this result is correct, Kenya will become the world's rare earth reserves, one of the five countries, and is expected to join with neighboring Tanzania, a rare earth exporter ranks.

Kenya and Tanzania, the newly discovered rare earth resources lead to world attention. For two people, how can the victims rather than the beneficiaries of a resource is their top concern, while the two biggest problems facing the government is how sustainable development and use of this resource, allowed better for the country's economic development and people's living standards improve services.

Throughout the world, China is relatively rich rare earth resources in the world. Currently, 23% of China's rare earth resources to bear more than 90% of the world market supply, to become the world's largest rare earth production, application and exporter. Analysts pointed out that China-Africa cooperation in the context of increasingly close, China has since the 1950s in the development of rare earth industry has accumulated rich experience and lessons to learn from the two African countries.

The first is the establishment of technical applications supporting industries, strengthen technology research and application of rare earth local talents. 1960s, because rare earth production, backward technology, low-cost Chinese export to foreign countries only rare earth mine, and then high-priced imports of rare earth products, the grim reality forced the Chinese have in the next few decades to intensify the development of rare earth separation and purification technologies. And this experience is in many African countries currently has the resources staged development process. History tells us that, for newly discovered rare earth minerals in Kenya and Tanzania, the collection of royalties or blindly exports are not the best way to develop this resource. To achieve sustainable development and utilization of rare earth minerals, the two departments should pay attention to the surrounding area through investment in supporting the establishment of mineral rare earth production and application of technology companies, such as household appliances, smart phones, computer manufacturers, etc., so that not only can solve the local labor force, but also to reap economic benefits while in training local skilled workers. Correspondingly, the relevant departments should be long-term perspective, institutions of higher learning in the country to strengthen local production and application of rare talents.

The second is to enact clear responsibilities, the details of a comprehensive laws and regulations, strict rare earth mining and production industry, access management, to control the rare earth mining process of environmental pollution. Rare earth mining, processing, separation and other aspects of the vegetation may be severely damaged, resulting in soil erosion, soil, surface water and groundwater contamination, crop production even crops. Some rare earth mine in the smelting, separation process will produce large amounts of toxic and hazardous gases, radioactive waste and other contaminants. Therefore, for these two African countries to develop policies protective mining of rare earth resources, production and environmental protection standards, a clear separation of rare earth smelting enterprise product quality, process equipment, production scale, environmental protection and other aspects of access requirements, rare earth industry to develop environmental risk assessment system is a priority.

Third, you should avoid over-exploitation, the establishment of strategic reserves of rare earth. Any resource has exhausted one day, not to mention the "rare earth" belonged "rare" resource. After half a century of mining super strength, China declining reserves of rare earth resources. Kenya and Tanzania to avoid this over-development of the old, you need to develop rare earth resources, while establishing strategic reserves of rare earth, rare earth resources will be included in a certain proportion of the reserves are not allowed exploitation of resources by the central government on the implementation of the enterprise resource reserves to give subsidies.

Analysts pointed out that mineral development is always relative short-term benefits and long-term interests of the game between: exports are short-term interests, and the interests of a long-term strategic reserve; resource development is a short-term interests, and environmental protection are long-term benefits; investment is short-term benefits and personnel training is the long-term interests. How do the two balanced accommodation, in particular short-term interests to avoid being kidnapped while working to achieve the country's long-term sustainable development, it is including Kenya, Tanzania, including many African countries need to face the important issue.


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