Hunan seven companies for illegal mining of rare earth whiten involving up to 730 million

The rule of law trainee reporter Zhang Shu weekend. "At present, China's rare earth market, 'Black RE' how many accounting, there is no exact statistics, some say more than 30%, but also information that more than half." Rare earth permanent magnet industry in the wire (2954, 0.00, 0.00%) material Wu Chen-hui, head of the rule of law the weekend told reporters that "the sale of 'black rare' rare earth market has been an unspoken presence." recently, this seemingly calm lake is a gravel pit break.

Since April 2014, by the Ministry of Industry and Information Technology, led Hunan Provincial Economic and Information Commission (hereinafter referred to as "Hunan Commission by letter") in conjunction with the Hunan Provincial Public Security Department, non-ferrous metals and other multi-sectoral composition of the Board special investigation team to Hunan Province conducted a special inspection of rare earth market.

After months of investigation, the findings released.

(Hereinafter referred to as "Special Report"), the rule of law, the reporter saw at the weekend Hunan Commission by letter of the staff to provide the "Hunan Province to crack down on illegal activities of rare earth" Information professionals reported that the special action were investigated, including Changsha, Yongzhou, Hunan prefectures, including seven companies involved in illegal rare earths, investigate suspected violations of more than 4,400 tons of rare earth, involving up to 730 million yuan.

Meanwhile, media reports said seven companies to the sale of illegal poaching and unknown sources of rare earth minerals, acts as a "black RE" "Happy" market "whiten" tool.


Some media said that these "whiten" after the "Black RE" substantial flooding the market, even flowing into the two headquarters in Beijing's large central enterprises. But the news has not been confirmed by the Commission staff letter Hunan Province.

"The regulators define 'black rare', including the rare earth rare earth dug two private Luancai and no plans to produce in accordance with national mandatory if China rare earth enterprises in full accordance with mandatory state plans for production, then the capacity will be limited, resulting in many enterprises have 'hungry' situation. this problem has plagued China's rare earth industry, but also our 'black RE' repeated root causes. "Wu Chen-hui Road.

Invoices using rare earth "whiten"

"Interim Measures on Management of rare earth production plan mandatory," the Ministry of Industry and Information Technology issued regulations, companies did not obtain the planned targets, not engaged in rare earth minerals and rare earth smelting and separation products. Ministry of Industry and Information Technology is responsible for the preparation of plans, issued, supervision and management.

However, there are a lot of companies are still instruction outside production.

"From investigate the situation, some companies through a variety of means to acquire illegal poaching and unknown sources of rare earth minerals, act as 'black RE' illicit circulation of 'white glove', and finally 'legally' sold to downstream smelting and separation enterprises greatly disturbed the normal order of production of rare earth market. "above Hunan Commission by letter of the staff explained.

According to the rule of law weekend reporter, the seven companies being investigated although located in Changsha, Hunan Yongzhou and three Western states, but not independence involved, but each division, cooperation and the formation of a high-speed operation of the "black" industrial chain , a step by step to complete the "black rare" and "whiten" work.

"Illegal mined rare, generally handled by a number of trading companies." Investigation team of staff who participated in the campaigns of the weekend reporter Road to the rule of law, "first by a trading company 'Black RE' buy in, then sales to another one or a number of trading companies. latter is generally able to issue invoices rare. "

Here's rare invoices, referring to the rare special VAT invoices. Statistics show that the State Administration of Taxation [microblogging] 2012 issued a notice, saying that "in order to strengthen the production of rare earth products, trade flows VAT general taxpayer VAT administration since June 1, 2012, rare earth enterprises must VAT tax billing system through security (rare earth enterprises special edition) issued ordinary VAT invoices and VAT invoices, invoices ciphertext are two-dimensional code form. "The move is intended to strengthen the supervision of the rare earth industry.

These illegal sources of rare earth minerals because they have a rare invoices, identity can be "washed." "Since then, these are 'washed' of rare earth products through formal channels, sold into the hands of smelting separation plant." Preceding the survey group, the staff said.

According to experts reported information display, above 7 is being investigated in the enterprise, Huayuan County Heshun Mines Ltd., Huayuan County Senyuan Mining Co., Ltd. (hereinafter referred to as "Mori source Mines"), Baojing abundance of minerals Trading Co., Jianghua rare Earth development Co., Ltd. 4 companies more involved in the purchase of the first step in "Black RE", and Hunan and gold Trading development Co., Ltd. (hereinafter referred to as "and Kim business"), Hunan abundance Chemical Co., Ltd. (hereinafter referred to as "abundance Chemical"), dual licensing County, Fu Yi Trading Co., Ltd. (hereinafter referred to as "Fu Yi trade") three business enterprises are playing "white glove" role.

Mori source to mining for example, according to statistics, the company has worked from state affairs steam (Beijing) Co., Ltd. irregularities in the purchase of mixed rare earth yttrium europium-rich ore 108.2 tons, while the owner of at least seven acquisitions in private hands yttrium europium rich about 450 tons of mixed rare earth mine.

Earlier, there were media reports that illegal rare earth minerals acquired before the four companies, followed by gradual inflow and gold trade, and abundance of chemicals, Fu Yi trade three companies. This three trading companies in addition to the above four production companies for procurement, but also maintained a trade with Beijing, Guangxi and other sources of rare earth ore from other sources.

"After the three companies in the illegal acquisition of the company's products (RE), the same time to the product (RE) issued a rare special VAT invoice." Preceding the survey team of staff to rule the weekend reporter explained, "These products are 'bleached ', you can not say that it is legitimate, but separated for smelting enterprises, many of which are as long as you can purchase invoice. "

Insiders have said publicly that rare special VAT invoices, and before the implementation of the rare earth industry, ordinary VAT invoices did not significantly different, but adds encryption capabilities, "as long as the previous VAT invoices out too rare earth rare earth companies, including traders, whether or not with the mandatory plan, you can apply to get, get invoices threshold and not much restriction. "

"Therefore, a professional invoice system for effective management industry is not big." Wu Chen-hui said.

"Black Rare Earth" and "price advantage"

"A few million tons a year 'black RE' impact on the market, then this situation continues, the healthy development of rare earth industry will be greatly hindered." About the moment of rare earth black industry chain, Hangzhou Permanent Magnet Group Co., Ltd. Sales Manager Jiaying Yan worried. "'Black RE' costs low, a large advantage in the marketplace."

"The cost of rare earth ore mined up just over 40,000 yuan / ton, but it's really worth a dozen yuan a ton." On August 8, 2014 the end of the sixth Baotou Rare Earth Industry Forum, experts say .

According to the rule of law weekend reporter, corporate exploitation of rare earth ore to get their 17% VAT, but due to different standards around the resource tax should be paid ranging from 20,000 to 30,000 yuan, plus mine up fees, currently a regular mine most species of rare earth ions circulating in the market price of 190,000 yuan / ton to 21 yuan / ton. Illegal mining companies entirely escape this part of the taxes, circulation price is only 90,000 yuan / ton to 130,000 yuan / ton, this low price also gives the "black rare" great living space.

"The current market downturn rare, informal enterprises are 'black RE' packed day even more sad." Wu Chen-hui introduced the Road, "and letting a lot of mandatory state plan emerges from upstream to downstream rare earth enterprises idle capacity in order to have enough to eat, these idle capacity has become a digest of the best channels for illegal exploitation of rare earth mine. "

According to the statistics of rare earth industry association, in 2013 the state issued a total rare earth minerals control indicator does not meet domestic demand. 2013 mandatory planning the supply of a total of 105,000 tons, of which 87,100 tons ore north, south mine 17,900 tons. But the corresponding total domestic demand has reached 151,740 tons, of which 125,168 tons northern ore demand, the South ore needs 26,572 tons, corresponding to a total shortfall of 46,740 tons, 38,068 tons northern ore missing, missing 8672 tons ore south.

"This should be the inevitable shortage, but now the actual situation of oversupply has always existed." On August 8 the just-concluded sixth Baotou Rare Earth Industry Forum, Deputy Secretary General of the Chinese Rare Earth Society Chen Zhanheng analysis.

And behind the "black rare" in addition to repeated interest-driven, the local government to take the attitude of acquiescence or connivance, has become an important reason for its rampant violations of individual enterprises.

"In the last year, cases of illegal rare earth mining in Ganzhou, Jiangxi Anyuan County, the local party secretary, Standing Committee member in charge of industry, chief deputy county Public Security Bureau were investigated. This case has fully exposed the interest chain behind black collusion phenomenon. "Ministry of industry Division inspector Jia Yinsong introduction of raw materials," because the South ore mined mostly in the deep forests, mining was the fastest time-consuming two-month period, local officials did not cooperate, this thing accomplished. "

RE recovery projects still tight watch

Information, to regulate the rare earth market, 2011-2014, the Ministry has four shots, to carry out the rare earth industry order rectification action.

According to published data show that in the past two years, the relevant departments have investigated cases of illegal mining of rare earth prospecting and more than 600 plays, smashing illegal mining point 14, ordered nearly 90 mines and smelter shutdown rare earth separation, rectification.

However, there are people in the industry do not want to be named, said the special rectification activities will indeed get great results in the short term, but the widespread distribution area of rare, often special events over, they have been active criminals, illegal mining, smelting and separation factory also "limelight" after the resurgence.

"The existing policy lacks clear definition standard, which brings difficulty to deal with illegal rare earth enterprises, while only find out what is illegal rare earth production enterprises, in order to rare 'black industry chain' precision strike." The industry source said.

Secretary-General of China Rare Earth Industry Association Ma Rongzhang have openly suggested that China's existing laws and regulations, imperfect rare earth industry, production of some administrative measures to combat illegal sales of rare earth enterprises, the lack of laws, regulations and policies to support the provision. Low-cost corporate law in mining and recycling of rare earth mine, but also a lack of regulatory documents to clarify the administrative examination and approval authority.

"Many rare earth recovery project (the main business of this project should be the treatment of industrial waste) to recover rare earth in the name of the line 'Black RE' acquisition, processing, real sale, rare earth 'black chain' provides a living space." Ma Rongzhang said, "but these companies are not dealt with in the multi-enterprise scope."

2013, China's rare earth industry association for rare earths waste recycling enterprise specialized research, survey results show that there were rare comprehensive waste recycling companies 56, including 39 in Jiangxi, Jiangsu, 4, 3, Hunan, Inner Mongolia, Shanxi, each 2, Henan, Shandong, Guangdong, Zhejiang, Yunnan each one.

"Among these, the 2011 assault since the approval of the enterprises accounted for around 90% of waste treatment capacity of 190,600 tons, of which neodymium iron boron, phosphor, polishing powder waste processing capacity was 141,700 tons, 23,100 tons and 2.15 ten thousand tons. "Ma Rongzhang Road.

"But in 2012, the national annual output of only 80,000 tons NdFeB, waste by 30 percent calculation, only 24,000 tons; yield phosphor, polishing powder is not high, should not be enough for these rare earths waste integrated waste recycling processing enterprises for processing. "he said," There are some companies to comprehensive recycling scrap the name, in fact, the line of separation of ore, ore mining enterprises in the formal pose a great impact. "

Management should be institutionalized, normalized

Faced with these rare earth market long-term problem, Jiaying Yan said there was no better solution can only proceed from capacity constraints.

However, with this problem comes is that China has begun to support the formation of six rare earth group work.

"Increasingly competitive environment, so that the capacity limitations of this approach can not be implemented." Wu Chen-hui said that in order to eradicate "black rare" to combat the illegal exploitation of rare earths from the source, and promote the healthy development of rare earth industry, management measures must be institutionalized, normalization in order to play better results.

He proposed that China should be introduced as soon as possible national regulations metals production and sales, improve mining, smelting and separation, processing, trade, waste recycling and other rare earth production and operation of the project examination and approval system, the clear approval of department approval authority and procedures for defining illegal enterprises provide workable standards.

Zhang Anwen, deputy secretary general of China Society of Rare Earths also agreed with this view: "We would also like to further clarify the division of responsibilities between the various ministries and local government departments, the focus of law enforcement down to form a provincial county levels of government, between departments efficient collaboration of rare earth production and sales of the regulatory system. "

In this regard, the Commission by letter Hunan rule weekend staff told reporters, after the special rectification actions, Hunan Province, the next step is to target the general renovation work in accordance with national RE deployment requirements, improve long-term working mechanism of rare earth regulation.

"We will establish a provincial rare earth mining, smelting and separation, recycling enterprise production files, the production capacity, sources of raw materials, production and sales volume, sales and other data filling whereabouts filing; rare earth production companies, including rare earth resources recycling business checks, and timely investigation of illegal acts; against the Ministry of linking the original letter [2013] 344 No. provided 68 verification enterprises to implement dynamic monitoring, focusing on track and prevent rebound, maintain normal rare earth production and market order. "the Hunan Commission by letter of staff said.

Meanwhile, above the staff, Hunan Province will strengthen and improve the management of rare earth, rare earth industry group supports the guidance of Hunan rare earth resources to accelerate the integration and consolidation and reorganization of work, the company cultivate a set of rare earth mining, smelting and separation, deep processing and application development in one large rare earth industry groups, to create a provincial rare earth industry development platform.

 

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