Two Ministries Unveils Tungsten and Rare Earths Quotas

Tungsten and rare earths production quotas released by the Ministry of Industry and Information Technology and the Ministry of Natural Resources. The two ministries jointly issued plans on the total amount of rare earth mining, smelting and separation control indicators and the total amount of tungsten mining control indicators for the year of 2019. The notice pointed out that rare earths and tungsten are products strictly controlled by the state in terms of total production control, and any unit or individual shall not produce without a plan or surpass plan.

According to the plan, the total mining quota at 132,000 T, smelting and separation at 127,000 T and 127,000 tons respectively. The total mining control index of national tungsten concentrate (65% tungsten trioxide content) is 105,000 tons, including 78150 tons of main mining index and 26,850 tons of comprehensive utilization index.

In addition, the notice requires that all rare earth groups should promptly stipulate the provincial (district) industrial and informatization authorities in which the subordinate enterprises are located, and then decompose the smelting separation indicators to reach the enterprise, and report the decomposition of the indicators to the Ministry of Industry and Information Technology and the province (district). Relevant provincial-level industrial and informatization, natural resources authorities and rare earth groups shall be connected in the process of index decomposition, and the indicators shall be decomposed and reported for filing within 15 working days after the notice is issued.

The notice mentioned that the total amount of rare earth mining, smelting, and separation control indicators should be allocated to key enterprises with advanced technical equipment and high environmental protection level to further increase the concentration of indicators. An enterprise that has one of the following conditions may not allocate a plan:

The mining enterprise does not have a mining license or a safe production license, and the recycling of rare earth resources projects that have been stopped or the relevant competent authorities explicitly request that the production be rectified.

The rare earth smelting and separating enterprises use the backward production process and the smelting separation capacity that has been listed in the banned or eliminated catalog to be less than 2000 tons (REO) per year, or explicitly requires authorities to stop production for rectification.

Unable to meet the environmental protection requirements of “Rare Earth Industry Pollutant Emission Standards” and radioactive protection.

Long-term production suspension, no production conditions.

The plan also mentioned that it is necessary to organize production strictly according to the indicators, comply with relevant laws and regulations on environmental protection and resource development. All rare earths groups should report the implementation of the plan truthfully, upload the data to the rare earth product traceability system (including imported mines) on time, and do not arbitrarily change the data such as production and inventory. Enterprises that report or report data will be notified and reduced.

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