Rare crisis in Japan worried

WTO ruling Chinese rare earth export restrictions violated the trade agreement , but that does not mean that Japanese industry so uneasy "rare earth crisis " has been Cancelled . Alternative origin of the slow progress the development of rare earth , instead of practical technology also take time , rare earths may again be sanctions against Japan, the Chinese government as a tool .

China is beginning to strengthen after 2000 rare earth export restrictions . "If it is to protect the environment , China should take measures to limit domestic production , rather than limiting exports. " World Trade Organization (WTO) Dispute Settlement Committee in its report presented in late March ruled that China 's rare earth export restrictions policy in violation of the relevant trade agreements . Subsequently, China appealed his conviction was appealed . WTO is scheduled to make a final decision before the summer , is a high possibility of maintaining the initial impression .

HV ( hybrid ), EV ( electric vehicle ) , wind power, flat-panel TVs , smart phones, etc. , the production of these high-tech devices are inseparable from rare earths. In 2010, over 90% of total global production of Chinese rare earth export restrictions , so that Japanese industry is deeply disturbed that the incident is still fresh .

So , WTO rulings make Japanese industry uneasy "rare earth crisis" truly past it?

Rare earth prices may rise again

China is strengthening in 2000 after the start of rare earth export restrictions , although the reason is to protect resources and the environment , but actually puts it as a diplomatic tool.

2010 China suspended rare earth exports to Japan will be able to prove it. Due to the collision occurred which led to the Diaoyu Islands waters immediately Sino-Japanese relations , the Chinese government to stop exports to Japan of rare earth , to achieve a real sense of Japanese sanctions .

China's re- exports to Japan of rare earth , not only improve the tariffs, and significantly limit the export volume . As a result, the original rare earth prices soared to 10-25 times , so that Japanese companies for the purchase of user exhausted . Later rare earth prices will fall , has slipped to near 2010 levels before , the reason is that many Japanese companies once the bulk purchase of trends in prices , resulting in a large number of stocks .

There was a time it was also worried that stock prices will rise again after use rare earths up . And after the Chinese export restrictions on rare earth policy was halted WTO, so many people calm down, think of rare earth issue has been resolved .

However , a person familiar with the situation in China but then raised objections to this view : " China rare earth enterprises appeared intent to impose ' green tax ' is. If you do , in fact, no difference with the export restrictions . "

Green taxes will be added to the export of rare earths , Japan and other countries, while the use of rare earths in China , it will emit green taxes without government reserves. Although the tax depends on the level of environmental protection , but if China really implement such a policy , Japanese companies may again have to buy expensive rare earths.

In fact, the Chinese government has begun to increase rare earth reserves . Although the Chinese rare earth exports continued to decline after 2011 , but in 2013 the amount of ion adsorption ore mining and other major rare earth mine still reached 9.38 million tons, an increase of 23 % compared to 2012 , which is likely to expand reserves and China increased production.

Chinese government reorganization of the rare earth industry may also lead to higher prices . China intends to operate in the year 2014 limited rare earth enterprises in the aluminum and six large conglomerates , aims to prevent price competition by the elimination of small -scale enterprises .

Time needed to find a stable alternative

China's rare earth export restrictions by the impact of policies , Japanese companies deeply felt the risk of China 's rare earth under control , thus speeding up the process of diversification of alternative technologies to the development and procurement , but recently these measures gradually stopped. Because the current rare earth prices have been low and stable state , many companies began to think , "Rather than rush to make an early practical alternative technologies , it is better to focus on the elimination of the inventory" ( a magnet alloy manufacturers ) .

There are also some companies released a rare alternative technologies , such as Japan, Daido Steel is not used for the development of a rare earth magnet dysprosium . However , the cost and other aspects of the problem to be solved , so that these alternative technologies truly universal , estimated that it takes a long period of time.

More serious problem is that Japanese companies rely on China to get rid of the banner name in 2011 after have announced plans to develop new resources or expand sourcing , but failed to advance these projects as planned .

Toyota Toyota Tsusho is a major customer , and actively take measures to ensure that the rare earth interests of the company. The company said that " unfortunately , rare earth projects are not formally entered the production phase ." In support of the Japanese government, the company plans in India , Vietnam and Indonesia and other places for rare earth production . These projects scheduled to begin production in 2013 , but did not come to fruition .

Sumitomo situation is the same. The company and the state-owned nuclear companies established a joint venture in Kazakhstan , planned use of uranium ore residue recycling rare earth business. The project should begin full production in 2013 , but the company said, " technology is still in the validation phase , followed by things yet to be determined ."

American molybdenum mining company (Molycorp) have enjoyed plans to develop specifically for use in Japan of rare earth supply base - "Mountain Pass mine " ( California, USA ) and the highly anticipated , but " the project than originally planned postponed more than a year . "

There are arguments that the above rare earth development plans have reasons for the delay is that the profitability of these projects due to falling prices of rare earth becomes difficult , companies weakened enthusiasm for resource development . If this continues, still adhere to the terms of " the future will be rare as a strategic resource ," the tough stance of the Chinese government , may be rare in Japan as sanctions tool again .

In fact, Japan has been found in the waters near the South Bird Island "rare earth mud ." This mud is rich in rare earth dysprosium ( HV and EV is to improve motor performance indispensable RE ) and other heavy rare earth elements. Here also has another advantage , and that is on the ground when the environmental risks facing the mining of rare earth and other radioactive waste is almost non-existent.

However , more than 5000m deep-sea mining of rare earth from the depth of the need to address issues such as profitability . In order to make these rare earths can be used , but also for mining methods and other technical innovations, no small difficulty in this regard .

Rare earths are indispensable for Japan's manufacturing resources, but the situation is still not smooth procurement has not changed . In the Sino-Japanese relations can not see signs of improvement in the situation in Japan to prevent the arrival of the rare earth crisis once again , I am afraid that the government and business must work together , can not stop efforts to get rid of dependence on China conducted . This article compiled by the Nikkei technology online


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Rare sale or loss of billions of dollars

Has been for about two years China Rare international litigation , in the spring of 2014 with the verdict : World Trade Organization (WTO) panel report announced that the export tariffs on China for rare earths , tungsten, molybdenum related products taken in violation of the quota management measures the relevant provisions of the WTO. In other words, China can not continue to manage the use of quotas for exports of rare earth .

In fact , the United States , Canada and other developed countries have very rich reserves. Prior to the 1980s , these countries are also the supply of rare earth exports. But with the increasing volume of Chinese exports of rare earths , they began to adopt or not adopt without possession to sell . Earlier also an important producer of rare earths United States, 1997 shut down the local 's largest rare earth mine in Mountain Pass mine , rare earth changed cheaper imports from China .

According to the statistics , from 1979 to 1986 rare earth export price was 7-9 U.S. dollars per kilogram ; 1987-1991 years 9.5 to 13.5 U.S. dollars per kilogram ; 1992-2001 , the price dropped to 9-11 U.S. dollars per kilogram ; 2002-2005 years , the price dropped to $ 5.5 per kilogram even .

Guangxian Chinese Academy of Sciences has said that from 1995 to 2005 10 years, because low-priced exports of rare earth , causing China's foreign exchange losses of up to several billions of dollars.

Since 2003 , China began to implement a quota system for rare earths , rare earths by 2005 to further cancellation of export tax rebates , export quotas compressed list of enterprises . Since 2007, China has implemented a mandatory plan for rare earth production , reducing exports of rare earths .

Meanwhile, China 's accession to WTO negotiations in progress , a focus that is lifting barriers on imported products , foreign products in order to achieve fair competition in the Chinese market. After that, as an incentive or a means of suppressing domestic production capacity , China has taken to raise or lower the export tax approach , and take some special products export quota system .

This means that some of the products in the domestic market price is lower than the price in the international market . A similar case is that in June 2009 , the United States , the European Union filed a complaint application to the WTO , said China has adopted export quotas on bauxite, phosphorus and zinc were nine kinds of raw materials, contrary to its WTO accession commitments when . These measures lead to other countries at a disadvantage in the production and export of chemical products , whereas China -related companies were given an unfair advantage in the competition.

The so-called rare earths international litigation , is the United States , European Union, Japan v. China rare earths , tungsten, molybdenum related products export management measures do not conform to WTO rules and commitments on when China joined the WTO .

China believes that relevant Chinese measures consistent with the objectives of sustainable development of the WTO, and the earth as a non-renewable mineral resources , are exhaustible natural resources that can be invoked in 1994 , " GATT " Article 20 , in order to protect the reason exhaustible natural resources export restrictions .

When China joined the WTO, there are 84 tariff increase tariffs. However, in the rare earth, tungsten , molybdenum, three resources , only the heading of a tariff increase range are tungsten , rare earths , molybdenum not in this range.


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Muzi chop: China Rare Earth there hope?

From March 26 against China Rare Earth , and today has 60 days . In accordance with WTO appeals process , the Chinese government has up to 90 days to decide whether to appeal . Now I do not know whether the Chinese Ministry of Commerce appeal , but according to industry sources say , whether Chinese or not to appeal , this time losing all a foregone conclusion. So the next step , China Rare Earth Gairuhezou go ? What kind of measures should be taken ?

First, how to recognize the rare earth

China Rare Earth is a very small industry , from mining to smelting mineral separation, the total enterprise value of 100 billion nationwide scale it , this and other petroleum and petrochemical , steel, power and other industries compared to simply immeasurably . Such a small industry , the impact on the national economy can be said to be minimal , basically negligible .

Rare earth industry is small, but not where the significance of rare earths . Rare is called industrial monosodium glutamate , that is, if your product braced little earth, product quality will be greatly improved. Significance of rare earths is far more than that, it is widely used in high-tech products , especially in the military field, which is the most critical areas.

That you know why the United States, Japan and Western countries Osiris to sue China , right? Because the rare earth is a strategic resource , and is a strategic non-renewable resources , there is no run out , so a number of Western countries will identify reasons to restrict China 's rare earth export restrictions .

For the rare earth loses, insiders already knew that , certainly losing no doubt . There are two reasons : First, China is indeed a problem in the rare-earth management , or how there will be " rare chaos ," said ? Second, let alone do have a problem, that is no problem , the Western countries will identify a number of reasons , to break China 's export restrictions .

Second, the current status of how

Since "The Middle East has oil , China has rare earth " after shouting out , many leaders have not been immersed in such pride being sober . After many years in the past , the state has introduced a number of policies , but also to strengthen the regulation of the industry , but the chaos of the rare earth industry has not fundamentally changed until today .

One rare environmental special verification , the verification by the State Environmental Protection Administration , led at the time specified , no special verification by environmental businesses , must immediately suspend production for rectification , but until today, no still continue to produce special verification by the company .

Second, the rare earth industry access system , this system by the State Ministry in charge , there are clearly defined, not made of rare earth enterprises must access all closed , but the fact that this system has not put in place, some small rare earth enterprises continue running .

Third, the problem of the formation of the six group from last year to now, has passed more than a year, but I saw the rain but not the wind , the industry is likely to be stillborn integrate new programs , because the current there is no substantive action .

Four rare earth enterprises in regional integration , the presence of the government to help business " matchmaker " problem, the government dare not determined substantive reforms are doing balance beam to play the game, so go , will miss rare opportunity for industry reform.

Fifth, to the rules and regulations guiding the industry and then from specific measures , the basic idea is not clear, national ministries bull management , involving local interests would hesitate , it is rare over the years leading to the root cause of the chaos , but also led to the rare earth industry consolidation can not now the real reason for the rapid advance .

Third, several reform proposals

This situation can not continue rare , especially in today's rare losing , but must proceed from the overall height of the national interest , from the perspective of the future development of rare earth industry , to consider and decide on the future of Chinese rare earth.

1 , must be established strategic rare earth resource locator

Rare is a strategic resource , what is a strategic resource ? That affect a country's survival resources. That being the case , we must take into national monopoly range of rare earth , but never again as in the past , this should not be put into a competitive field stuff into the realm of perfect competition . Only under such guidelines in order to develop the right strategy and development of rare earth industry policy .

2 , the establishment of the two largest Rare Earth Group

Now talking about the establishment of six Rare Earth Group question itself is a completely wrong decision. Such a decision is entirely in the " pound paste" , is the result of balancing the interests of all parties , local interests , and not really from the rare earth industry itself to consider reforms. So, for such a small industry , the formation of two rare earth group is sufficient, rather than what the six Rare Earth Group . Baotou Steel Rare Earth Group North core formation , the South Group Ganzhou Rare Earth core formation . Another important reason is that the North is a light rare earth, rare earth metal heavy rare earth south , separated from mining to have differences , the two groups is more conducive to the formation of the North-South specialization and differentiation of rare earth management .

3 , the formation of a national R & D institutions rare

Currently addition Baotou Rare Earth Research Institute , there are no more decent rare earth research institutions. Rare cases from abroad to extend product development point of view, China still exists a big gap. From these two points is concerned, especially for such a small industry is concerned, as soon as possible to seek new breakthroughs in research and development of rare earth , we must focus its efforts . If we continue as in the past so fragmented, just the reality of corporate interests, can not be in the rare earth new products, new materials make a difference , not to early to get rare high value-added products.

4 , specification or cancel trade and joint ventures

Rare Earth Rare Earth circles the dealer has such a metaphor , called " five not open, open eat decade" This phenomenon reached its peak in 2011. This year, reselling only one ton of rare earth export quotas can earn 500,000 yuan , is absolutely rare and therefore losing the sky . Also in that year , making rare earth mining and separation of corporate entities , but also keep up a hard year of rare earth do people earn more trade , such a situation is not too normal ? Therefore, it is necessary to implement the franchise for rare earths. For the country 36 rare earth joint ventures, can no longer continue to do so , because these ventures are the main cause of rare earth outflow channels and smuggling .


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Rare Pilsenite Panxi pilot resource tax ad valorem

2013 , the National Development and Reform Commission officially approved the establishment of a strategic resource innovation panxi Development Experimental Zone , which is the only one to develop comprehensive utilization of resources approved the establishment of the current state of the test area , which means Panxi vanadium and titanium rare strategic resources to develop a national strategy for integrated .

But Resources Innovation Development Experimental Zone as a pilot , fiscal policy how to play a supportive role in the development of the test area ? Perhaps, from the Institute of Fiscal Science, recently introduced the " strategic resources to support the development of innovative panxi pilot area development and taxation policy research report " ( hereinafter referred to as " " study " " ) to find the answer.

Let Innovation Development Experimental Zone Development Fund

In the start-up and growth stage of the test area , the spontaneous growth on its own , it is difficult to grow as quickly as possible , therefore, need to give some support to the government policy, taxation policy is an effective means. Businesses in the region through the test to give some preferential taxation and revenue policies , so that more high-quality companies , capital, technology, personnel gathered zone.

" Research Report " proposed the establishment of Innovation Development Experimental Zone Development Fund , to support the test area core technology development, innovation awards, established businesses and infrastructure , enhance innovation power .

Currently , vanadium and titanium resource utilization range is too narrow , difficult to enjoy preferential corporate income tax and VAT , for the experimental area of energy resources, recycling , comprehensive development, technological innovation and other enterprises with significant VAT refund policy .

Specifically, the proposal would vanadium and titanium -related technologies and applications included in the " List of Resources Comprehensive Utilization corporate income tax " in the calculation of taxable income , the reduced rate of 90% is included in the total revenue that year , improved utilization of vanadium- titanium- vanadium and titanium businesses resources enthusiasm.

Director of the Bureau of Finance and Accounting Training Center financial research Panzhihua Lizheng Hong told reporters , you can " waste water, waste gas, waste ," the part of the directory , add " vanadium products , titanium products, ore powder , nano iron & rdquo ; such as product name, could also be considered for a table outside vanadium-titanium magnetite ore, the use of low -grade ore as a " three wastes" comprehensive utilization of resources , comprehensive utilization of resources to enjoy preferential corporate income tax .

For Li Zhenghong called " three wastes" utilization " study" suggested a very low taste consolidated production of vanadium and titanium magnetite iron ore, titanium ore given preferential 50% VAT refund , the tax rebates for R & D enterprise vanadium and titanium products.

Implementing pilot resource tax ad valorem

" The current resource tax is the amount levied , not really reflect market supply and demand for resources . "李正洪said, such as corporate annual 5 million tons of resources , regardless of the business is profitable or losses are taxed per tonne , which no longer meet the current development of the resource market.

Therefore, the " study" made ​​in the test area panxi pioneered ad valorem reform rare earths, bismuth telluride and other important mineral resources , the implementation of the resource tax ad valorem and other pilot , ad valorem for the failure to implement reforms , continue to implement reforms from the taxable amount of minerals , a modest increase the tax standard part of minerals , reducing vanadium-titanium magnetite ore and low-grade mineral resources tax balance sheet and cost , to encourage low-grade ore mining and off-balance sheet the development and utilization .

See this proposal , Li Zhenghong excited, " ad valorem resource tax reform , the higher the price of resources , indicating that the more tight and Jingui resources , the greater the contribution of local resources , market favored by nature more taxes and more, but also help to improve the level of comprehensive development and utilization of resources . "

In the existing vanadium products, high-speed rail vanadium , high -tech alloys VN . " Study" recommends both types of products to restore the export tax rebate rate of 5% , encourage enterprises to enhance resource utilization and improve product competitiveness , and efficient and clean technologies vanadium , titanium sponge , titanium vanadium and titanium and other strategic resources and related technologies utilization of waste into the " western region encouraged industries catalog," when the main business income accounted for 70 % of the total annual income of the enterprise business , you can enjoy a reduced corporate income tax rate of 15% .

Establishment of a pilot ecological compensation mechanism

Financial Panxi test area where weak area of major infrastructure , ecological environment protection greater spending pressures , " research report " suggested that the central government to increase investment, the establishment of ecological compensation mechanism , focusing on regional arrangements for major infrastructure , ecological project construction and environmental protection ; central financial arrangements for prospecting and mining rights in the use of fees and expenses the price increase on the ecological environment of Mineral resources Development Experimental Zone area recovery and development investment ; central fiscal merge eco-friendly aspects of the existing norms on the basis of special funds , special funds related to environmental protection should be appropriate to the test area inclined to encourage mine ecological environment restoration .

Panxi test area should be included in the scope of transfer payments to key ecological function areas. Currently, Panzhihua Cycas Ertan National Nature Reserve and National Park belongs to the "national main functional area planning " prohibit the development of regional metastasis in national key ecological function areas within the range of pay ; Panzhihua and Liangshan southern part of the "national ecological function zoning ." the Sichuan-Yunnan dry and hot valley soil conservation important area should also enjoy guiding subsidy policy .


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Ganzhou Rare Earth Industry approved demonstration area well-known brands

AQSIQ recently on the Ganzhou Development Zone "national brands to create demonstration zone" application be approved, the approval of Ganzhou Development Zone to build "national rare earth permanent magnet and tungsten powder processing industry well-known brands to create demonstration zone" , which is Jiangxi Province in 2014 only approved to build a "national brands to create a demonstration area ."

Ganzhou Ganzhou Economic Development Zone in recent years around the core of the development of growth pole position, Gan seize strategic opportunities for South Sioux district revitalization and development , planning and construction of the tungsten and rare earth industrial park. 2013 , the district and its application of rare earth and tungsten industry realized main business income Pobai billion, ten billion yuan into the ranks of industrial clusters .


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