According to sources , the Ministry of Industry and Information Technology jointly with relevant departments should intensify punishment is illegal rare earth mining and pollution control efforts, the formation of a large group of rare earth industry, the results will also be released before the end of the year . Recently, the Ministry of Industry and Information Technology with the relevant departments and local governments on the illegal exploitation of rare earth concentration and control the conduct . The next stage, the Ministry of Industry and Information Technology will conduct spot checks.

Large Group for the year or outcome

August 7 this year , the Ministry of Industry and Information Technology jointly eight departments launched a three-month renovation of the rare earth industry special action. Relevant departments through the establishment of rare-earth management intends to " black list " and categorized for management, to establish long-term regulatory mechanisms, but through the formation of a large group of rare earth industry to improve industrial concentration.

China's rare earth industry consolidation is to " large group " of direction. Recently there is news that a large group of rare earth has now submitted to the State program , once approved program , the formation of a large group of rare earth will be officially launched.

Program will include the formation of a large group of rare earth number, size and thresholds and related standards , which also includes the integration of a large group to bear the tasks . It should be noted that the above program approved in principle , a number of qualified local and rare earth enterprises can be established to prepare a detailed program reporting which, if approved will enter the ranks of a large group of rare earth , the work year is expected to see the outcome.

In fact, in 2011 , the State Council issued the " State Council on promoting the sustained and healthy development of rare earth industry, a number of opinions " and once made ​​it clear with one to two years , the basic formation of large-scale enterprises as the leading rare earth industry pattern.

Notably , the upcoming formation of a large group of rare earths at the policy level will be allowed to force integration of existing domestic rare earth ore and smelting separation upstream companies , rare earth resources will be further concentrated to a large group . In order to better accomplish the integration of rare earth targets , reporting a large group of rare earth rare earth enterprises , we must first carry out an internal integration and rare earth resource optimization , especially in the integration of the region , while smelting enterprises to bear the separation of " reduced capacity " of the task , if not reached to the requirements will not be approved .

"Rare earth consolidation and reduction of production capacity will require substantial financial, human and material resources , but also to the interests of the game a lot , for the rare earth enterprises is not an easy thing ." Domestic a rare large-scale enterprises , frankly .

" Competition " staged

It is reported that , despite the large group of rare earth solution has not yet formally introduced, " tournament" already staged. On the one hand , regional integration within the earth accelerated last year, including Guangdong , Hunan, Fujian and other places have been set up rare earth industry group, the complete integration of rare earth resources in the province , while the master of 95% heavy rare earth production in southern city of Ganzhou Rare Earth and leading the production of 90% of the light rare header in the " staged " Integrating drama. On the other hand , including Minmetals, aluminum and other central enterprises have begun to accelerate the rare earth industry chain pace of mergers and acquisitions to become a major contender large group of rare earths .

According to industry analysis , in accordance with the program of integration ideas, Baotou Steel Rare Earth , Minmetals Rare , Ganzhou Rare Earth Group , aluminum , colored Rising , Jiangxi Copper ore with rare earth resources , including large enterprises more competitive advantage . At present, the whole earth prices continued to slump, will undoubtedly promote the formation of large groups accelerate industry consolidation will benefit the rare earth industry out of the woods .

Note that , by the first half of the rare earth product prices continued to fall, recently published semi-annual data listed rare earth companies are not optimistic , including the Baotou Rare Earth , Rising colored , Xiamen Tungsten , China Minmetals and so varying degrees results decline. Among them, the Baotou Steel Rare Earth recently released semi-annual report, first-half operating income of 4.832 billion yuan , down 23.27% , net profit of 1.051 billion yuan , down 33.03% . Rising colored released half-year results for 2013 show that in the first half operating income of 495 million yuan , down 55.94% , net profit loss of 69.22 million yuan, down 835.63 percent .

For the distribution of China's rare earth resources divided north and south , the northern light rare earth resources in the earlier integration has been completed and is currently focused primarily on the integration of the heavy rare earth resources in the South integration .

Jiangxi Ganzhou is the heavy rare earth resources in our region with the largest , most focused on the southern region of rare earth resources. In September 2012 issued by the Ministry of Land and "rare earth exploration list" and "rare earth mining rights list" shows that 10 rare earth exploration licenses in Jiangxi Province has three , Gansu has two , Fujian, Guangdong, Guangxi , Inner Mongolia Sichuan each one . The 67 rare earth mining warrants , Jiangxi has 45 , Sichuan has seven , five , Fujian , Guangdong, three , two , Yunnan , Hunan, Guangxi and Shandong have one .

Among them, in the south six provinces with rare earth resources , rare earth reserves in Hunan bottom of the rankings . The mining rights in Jiangxi Province, 45 , 43 are Ganzhou Rare Earth Mining Group.

However, because since 2011 , prices of rare earth products are too serious , the state now wants to control production to stabilize prices, led to the current cut-off in the semi- isolated part of the state enterprises , the average capacity utilization of only 30%. The Minmetals through the Group strengths in the rare earth trade links champion , and through the acquisition of rare earth products in the country , in the traders had a lot of cake .

Market structure or clear

At present, China in the north and south regions have formed their own enterprises , while also accelerating the pace of SMEs exit , industry concentration has improved significantly .

Analysis of the industry , industry chain integration , capacity optimization is the key work of rare earth industry , and the implementation of the work is bound to have a significant impact on the whole industry , concentration is increased, the rare earth market will rebound into the channel , the relevant listed companies will greatly enhance the core competitiveness . Meanwhile, the supply and demand straighten out , the rare-earth prices will go up again.

Related statistics show that China's rare earth industry management work in there are still many problems to be solved , the illegal exploitation of the problem is growing worse . In 2012, China's rare earth production reached more than 40,000 tons of illegal , illegal smelting products reach more than 50,000 tons , the export smuggling phenomenon is also more prominent in some places . In addition, the environmental pollution problems in the rare earth industry insiders have also occurred .

China Rare Earth Association Secretary-General Ma Rongzhang August this year, the forum in Baotou Rare Earth , says that at present the country illegally rare earth production capacity has nearly legitimate businesses combined. In 2012 , for example, the South of heavy rare earth minerals total of 13,400 tons of mandatory plans . But according to Rare Earth Industry Association statistics, in the South mine in 2012 to produce at least 3.7 million tons, which can calculate the separation of the South smelting enterprises to obtain 70% of the ionic minerals from unknown sources .

As for the rare earth industry consolidation , industry experts said that with rare special rectification action unfolds, but also the climax of industry restructuring , the establishment of a large group of rare earth industry in the future in the market has laid a clear foundation , big corporate mergers and acquisitions also entered a new stage.

The above analysis, on the one hand , at the national level to encourage mergers and acquisitions work unfolded, to leading enterprises as the center, the whole idea of ​​SMEs eliminated achieved a major breakthrough , a small , chaotic, and poor phenomenon has been suppressed ; hand, Rare the promulgation and implementation of purchasing and storage policy effect is obvious, and not because of the rare earth industry violent vibration from the market and severe decline , the industry has begun to show signs of stabilization and recovery out .


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Su Bo, vice minister of the Ministry of Industry on the 11th at the World Economic Forum 2013 Annual Meeting of the New Champions Summer Davos Forum and the Seventh gap, said the Ministry of Industry, together with other relevant departments to increase efforts to investigate illegal rare earth mining and pollution control efforts, the formation of large group of rare earth industry, the final results will be released before the end of the year. New energy vehicle development support policies continued, lowering the cost of new energy vehicles will eventually need to rely on technology development. Ministry of Industry and the Ministry of Finance will jointly implement more than 40 billion yuan of funds used to support the new energy automotive design, battery development projects.

For the rare earth industry pollution problems, Su Bo said that the recent Ministry of Industry jointly with relevant departments and local governments to act on illegal mining of rare earth concentration and control. The next stage, the Ministry will also conduct spot checks.

August 7 this year, the Ministry of Industry jointly eight departments initiated a three-month renovation of the rare earth industry special action. Relevant departments through the establishment of rare-earth management intends to "black list" and categorized for management, to establish long-term regulatory mechanisms, but, through the formation of a large group of rare earth industry to improve industrial concentration.

Turning to the development of new energy vehicles, support policies, Su Bo said that this work continues to advance, promote new energy vehicles in the world are faced with obstacles, not be resolved overnight. According to the relevant files, Ministry of Finance, Ministry of Science, Development and Reform Commission, the Ministry and other departments had started a new energy vehicle demonstration project's goal is that by 2012 domestic new energy vehicles operational scale automobile market share reached 10%. Su Bo said the promotion of new energy vehicles in 2012, the annual task is not completed, but this does not affect the automobile industry optimistic about growth and consumption of space.


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According to the U.S. Geological Survey Bureau statistics, in 2012 the global production of rare earth (calculated as oxide) was 118,900 tons, and in 2011 was essentially flat. Compared to recent record highs of more than 10% reduction by 2010, after the start of the year is still in a sluggish state. In addition to the implementation of China cut, the new mines outside of China plan was postponed. Development of rare earth thermal cooling, in large part because of reduced demand in Japan. Japan had accounted for over 10% of global demand. According to the Japan New Metals Association statistics, in 2012 Japan's domestic demand for rare earths is 14,470 tons, 31% less than in 2011. Especially for the magnets and rare earth glass abrasive materials fell significantly.


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State purchasing and storage plan will be ten billion rare earth opened in October , when the message loud and clear at the time , there are already purchasing and storage enterprises began quietly raising funds to expand production scale , etc., to meet this time the state purchasing and storage .

This is not the first national reserve of rare earth industry , but now it is still being cast a layer of mystery. Country-driven , with enterprises as the main actors of the national reserve mechanism is due to the demands of the state and enterprises are not the same , let it fall into the strategic reserve, or to adjust prices have played a limited role in the deadlock, but instead was leveraging a gray interests chain.

List of companies involved in purchasing and storage Exposure

"There is this thing ( national reserve of rare earth ) , it should be the fastest in October , the entire plate will have ten billion yuan purchasing and storage , and is mainly in the heavy rare earths ." September 17 , a year in purchasing and storage rare company insiders told reporters .

Although the national reserve, but in fact last year was the form of invitation to tender for enterprise , however , a large rare earth enterprises will generally be invited , especially state-owned enterprises .

September 11 , the distribution indicators are rare earth smelting and separation products Minmetals issued "on the 2013 second batch of rare earth mandatory production plan targets adjustment notice," said the Ministry of consent obtained , its two subsidiaries , respectively, from the original 835 tons and 600 tons was adjusted to 1335 tons and 800 tons, respectively, up 500 tons and 200 tons. Analysis of the industry , which is probably connected with the forthcoming purchasing and storage are not unrelated.

Rare analyst Du Shuai Bing told reporters , it is understood that the purchasing and storage enterprises have six participating , purchasing and storage products praseodymium neodymium 4000 tons , praseodymium , neodymium oxide, each 500 tons , 1200 tons of dysprosium oxide , or 1,500 tons oxide, erbium 300 tons , also plans Shouchu europium oxide, terbium each 500 tons , 2500 tons of yttrium oxide or 2,000 tons , as well as Lutetium oxide , a total of 10,000 tons or more, and the country will be slightly higher than the recent market price purchasing and storage price .

One yuan Insiders said the reporter , 10,000 tons more reliable revenue reserves , but europium, terbium , dysprosium three annual product revenue reserves less debatable .

A corporate insiders say , outside of what specific companies won the bid , which products , how much money is difficult to obtain from official channels .

Shouchu funding gap problem

And now the question is, ten billion funding gap in the end how purchasing and storage solutions ?

Xiamen University, China Energy Economic Research Center Lin Boqiang told reporters at the national level strategic purchasing and storage supposedly financed by the state out , but we have not yet achieved .

The industry had also been calling for the establishment of national purchasing and storage of rare earth special fund for the use of foreign exchange reserves of rare earth .

Weber Institute for Information Industry , principal analyst Zeng Hai Wei said : "This is good for business thing, so purchasing and storage enterprises funds should be invested mainly in government revenue in the form of subsidies or other companies , or countries have set up a stabilization fund , the use of counter-cyclical operation to regulate the market supply and demand . "

However, as early as May 2011 , the State Council issued " on the promotion of sustained and healthy development of rare earth industry, a number of opinions" , the first of 18 proposed to establish strategic reserves of rare earth system , according to the national reserve and corporate reserves , physical reserves and resources combined reserves ways to build strategic reserves of rare earth . Central government on the implementation of the resources, products and business district reserves subsidies .

However, there has been State Reserve funding problems, together with the volatility of the previous rare earth prices , the central and local state-owned enterprises in the fierce competition in the rare earth resources , are restricting the national implementation strategy for purchasing and storage of rare earth .

Baotou Rare Earth , told a newspaper reporter last year, participate in national purchasing and storage of Baotou Rare Earth Rare Earth International Trade Company is a starting point in its purchasing and storage , purchasing and storage financed by the enterprises themselves out , but until this year only then earth closed state Chu 's revenue back to the enterprise.

"This year I'm afraid purchasing and storage of products obtained national funds next year ," the Funing Rare Earth Industry Co., a senior reporter said, " state purchasing rare breed a lot, purchasing and storage is not a one-off , and the need for a certain number purchasing and storage sustained period of time , and then the purchasing and storage of products up to the State Reserve Bureau of varieties , which are required to spend time . "

Such a high return on investment from where ?

Countries generally have Shouchu guide price, and the price is generally higher than the market guide price , which will participate in purchasing and storage enterprises to find ways to maximize the benefits , it will use the money in the fund to finance low- income community Chu rare earth products , and then make the difference among enterprise return on investment cash is not a problem .

The investment company business manager told reporters that last year 's investment is now fully materialize it, and the person stressed to reporters , this project will certainly rare for state purchasing and storage , and not for other purposes.
Private investors - Investment Company - Rare purchasing and storage in the enterprise - SME community or traders , apparently in order to participate in purchasing and storage enterprises as the center of a national reserve clambered over the gray interests of the chain has been formed.

Rare side Binbin analyst said that the state purchasing and storage of rare earth , the biggest benefit is obviously involved in purchasing and storage of raw materials companies , mainly because the state purchasing and storage to create an atmosphere of action , indirect positive will get the entire upstream rare earth industry, and downstream applications industry has to suffer .

In the last year of their national reserve is also known by the outside world , " turned a profit ." In the first quarter attributable to shareholders of listed companies net profit of only $ 245 million in the second quarter , but the downturn in the industry counterattack was 805 million yuan , respectively, year on year and up 122% qoq and 229% . Analysts said it was the company recognized in the second quarter of last year, state purchasing and storage of rare earth gains.

Since purchasing and storage among the gray interests of the chain and many other issues , the state purchasing and storage mechanisms earth began to be re-examined. Jiangxi Ganzhou a rare researchers said that at present , including businesses, local governments, state purchasing and storage levels are present, because last year was officially launched at the national level purchasing and storage , purchasing and storage system needs sound , including purchasing and storage purposes , timing, objects, and closing storage type and quantity , but the key point is that in the end who is out of money and so need to straighten out .


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