China has been the world's largest rare earth exporter, but due to the limited backward processing technology, it is only an export raw material-based country for a long time. While the Beijing Nonferrous Metal Research Institute has announced an exciting news on 24 March 2013 that, The National Engineering Research Center of China's Rare Earth Materials has been officially formed in Beijing. With the birth of the national team, China's rare earth industry will transform from resource exports into high-tech products output.

According to Ao Hong, the Vice President of the Beijing Nonferrous Metal Research, The National Engineering Research Center of China's Rare Earth Materials is one of the first research centers backed by the State Planning Commission, with the utilization of World Bank Loan. Previously, the intellectual and capital spent on the study of Chinese domestic rare earth project are relatively dispersed, resulting in lower technical content of rare earth products, long-term raw material exports.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Ganzhou Rare Earth Group entered operation on March 30, 2013, marking an important step forward in Ganzhou’s intensive development of rare earth industry.

Ganzhou claims title as China’s biggest medium and heavy rare earth production and processing region.

Ganzhou has been making great efforts in integration of rare earth industry in its jurisdiction since December 2010. All rare earth mines in the city were closed for readjustment in May 2011 and construction of standard mines is now underway.   .

Ma Rongzhang, Secretary General of the Association of Chin Rare Earth Industry, said Ganzhou Rare Earth Group will step up M&As and improve industry concentration so as to develop itself into a large south China rare earth group.  

Ganzhou Rare Earth Group is a large state-owned enterprise in Ganzhou as well as a leading south China rare earth enterprise. As the sole owner of mining rights to rare earth in Ganzhou, the company integrates the entire rare earth industry chain, from mining through smelting, separating, processing, trade, and R&D.

                   

Integration of light rare earth industry in north China has made great strides. At the end of last year, Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech (hereinafter referred to as Baotou Steel Rare-Earth) signed the Framework Agreement on Integration and Reorganization of Rare Earth Upstream Producers with shareholders of twelve rare earth upstream producers in Inner Mongolia. Each of these twelve enterprises has agreed to transfer 51% stakes to Baotou Steel Rare-Earth for free.

Integration of rare earth industry in south China proceeds more slowly compared with north China. That being said, some central state-owned rare earth enterprises and those in key provinces and regions have stepped up M&As. For example, regional groups have been established in Jiangxi and Fujian, improving industry concentration in these provinces. Zhu Hongren, press spokesman of the Ministry of Industry & Information Technology said corresponding departments will give the green light to the establishment of large rare earth groups as appropriate.

Mr. Ma has urged Chinese rare earth enterprises to closely track rare earth development overseas and lay out corresponding schemes. Many foreign companies such as Molycorp and Lynas Corp have been building or expanding rare earth dressing and smelting projects in recent years. He also proposed to relax control on light rare earth exports while protecting medium and heavy rare earth.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

As for rare earth producers, the bad days seem to have come already. According to 2012 performance report from listed companies, the rare earth industry is experiencing tough time.

According to performance report from Inner Mongolia Baotou Steel Rare-Earth Hi-Tech from January 1st, 2012 to December 31st, 2012, net profit attributable to share holders of listed company has fallen from 50% to 60%.

Actually, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech is not the only company experiencing tough time in the industry. According to performance report from Guangdong Rising Nonferrous Metals Group from January 1st 2012 to December 31st, 2012, net profit attributable to share holders of listed company rell by 60-80%.

According to Wangjian, Senior Wealth Management of Changjiang Securities, said that Chinese rare earth exploiters’ dumping of rare earth by massive mining at the expensive of environmental damage is the major reason behind profit contraction at China’s rare earth industry. Besides, the soft demand in China is also a major reason behind profit contraction at Chinese rare earth producers.

Not only large companies reported profit decline, small companies also have very harsh time. According to Yuan Zhibin, researcher from CIC, administrative means adopted by government forced many companies to exit market, the remaining companies also feel the pinch. The overcapacity and excessive exploration not only resulted in steady decline in rare earth prices . After Chinese government restricted exports of rare earth, domestic rare earth producers lose overseas market, which resulted in high inventories and big losses for them.

According to Lin Liangmin, researcher of China Webmaster, overcapacity and soft downstream demand is the major reason behind sharp contraction of profit at rare earth sector.

The soft downstream demand only refers to domestic market, while overseas demand is still brisk. However, China’s excessive exploration of rare earth made government to interfere in this industry by restricting exports. Given that rare earth demand in China is limited, the whole industry fall into recession.

Besides, production of rare earth from the US, Vietnamese, and Mongolia also exert impact on China’s rare earth producers.

Based on current market movement, the industry is unlikely to reverse weak momentum in the short term, and will lucrative profits shall no longer return this year.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

Peak Resources will soon release a revised JORC Resource for its Ngualla Rare Earth Project in Tanzania and has been granted a trading halt.

Ngualla currently boasts the fifth largest rare earth resource, and the highest grade of the seven largest deposits outside of China.

At present, the project hosts a resource of 170 million tonnes at 2.24% REO. The total resource includes a higher grade, near surface zone of 40 million tonnes at 4.07% REO for 1.6 million tonnes of contained REO.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 4th April 2013.


Rare Earth Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com