Yesterday, the Ministry of Commerce announced the list of rare earth export companies in 2011. Compared with the list of exporting companies in 2010, 10 foreign-funded enterprises were added to the enterprises that met the requirements for rare earth export quotas in 2011. Regarding whether China will continue to curtail the export quota of rare earths next year, Ministry of Commerce spokesman Yao Jian said that China will take a responsible attitude on this issue and will ensure that the basic supply of rare earths in the global market will not cause excessive impact on the industry.
In November, the Ministry of Commerce announced the initiation of the application procedure for export quotas for rare earths and other minerals in 2011, and clearly stipulated that non-compliant environmental protection requirements, and environmental protection treatment facilities that do not meet the production scale cannot be used for quota declaration. The enterprises announced in 2011 that meet the reporting conditions for rare earth export quotas include 22 Chinese-funded enterprises and 10 foreign-funded enterprises.
Among the 32 companies, 22 Chinese-funded enterprises, including Baotou Steel Rare Earth Co., Ltd., a wholly-owned subsidiary of Guangsheng Non-ferrous Metals, Guangdong Guangyu Non-ferrous Metals Import & Export Co., Ltd., are in line with the first batch of the 2010 list. Of the 10 newly added foreign-funded enterprises, 9 have passed the review, and 1 is "waiting for review." The relevant person of the Ministry of Commerce stated that if the companies to be audited in the list can complete the relevant materials within the publicity period, they will be transferred to qualified enterprises, otherwise they will be treated as unqualified.
It is worth noting that the 10 foreign-funded enterprises had obtained the rare earth export qualification when the Ministry of Commerce issued the second batch of rare earth export enterprises in September 2010. Obviously, the export qualifications of the 10 foreign-funded enterprises may be extended in 2011.
With China’s increasing attention to resource issues in recent years, coupled with strong calls for rare earth issues from all walks of life, after 2006, the rare earth industry’s unappreciated situation began to change. Since 2006, new rare earth mining licenses have been suspended and a mandatory plan for mining has been implemented. At the same time, China has also gradually strengthened the concentration of rare earth industries to achieve the purpose of protecting resources and the environment. Last year, global demand for rare earths was around 130,000 tons, and China's exports were about 72,800 tons, which accounted for 56% of them, and their share slightly decreased.
In 2010, the policy for the rare earth industry took heavy hits. On May 21, the Ministry of Land and Resources held a special action conference on the development of the rare earth and other mineral development orders. In the same month, the Ministry of Industry and Information Technology drafted "Environmental Access Conditions for the Rare Earth Industry" began publicity and set a threshold for the mining and smelting of rare earth minerals. The Ministry of Finance also announced recently that with the approval of the State Council, since January 1, 2011, the tax rates for China's import and export tariffs will be partially adjusted, and the export tariffs for individual rare earth products will increase. The tentative tax rate for other rare earth metals, antimony and bismuth that are not mixed or fused with each other is set at 25% next year; the temporary tax rate for other rare earth oxides exported is 15%.
Yao Jian said that next year China's export of rare earth quotas is still in discussions with relevant departments and will be announced to the market. China’s export policy for rare earths is closely linked to the industrial policies of rare earths. China’s basic policy for rare earth industry policies is sustainable development and protection of the environment. It is for this purpose that China has reduced the production and smelting of rare earths. And export scale.
Yao Jian also said that China’s rare earth exports have been reduced by 30%-40% this year, but it still achieved supply to major markets such as Japan, Europe, and the United States. The implementation of China’s policies has also been understood by the international community. In recent years, China has strengthened international technical cooperation. At present, China and the United States and Europe have energy conservation cooperation mechanisms to improve the level of mineral resources smelting technology; in addition, it will further promote multinational cooperation to find rare earth resources. China currently has 30% of rare earth reserves. However, trade volume accounts for 90% of the world's total. Hopefully, this phenomenon can be gradually improved.
In November, the Ministry of Commerce announced the initiation of the application procedure for export quotas for rare earths and other minerals in 2011, and clearly stipulated that non-compliant environmental protection requirements, and environmental protection treatment facilities that do not meet the production scale cannot be used for quota declaration. The enterprises announced in 2011 that meet the reporting conditions for rare earth export quotas include 22 Chinese-funded enterprises and 10 foreign-funded enterprises.
Among the 32 companies, 22 Chinese-funded enterprises, including Baotou Steel Rare Earth Co., Ltd., a wholly-owned subsidiary of Guangsheng Non-ferrous Metals, Guangdong Guangyu Non-ferrous Metals Import & Export Co., Ltd., are in line with the first batch of the 2010 list. Of the 10 newly added foreign-funded enterprises, 9 have passed the review, and 1 is "waiting for review." The relevant person of the Ministry of Commerce stated that if the companies to be audited in the list can complete the relevant materials within the publicity period, they will be transferred to qualified enterprises, otherwise they will be treated as unqualified.
It is worth noting that the 10 foreign-funded enterprises had obtained the rare earth export qualification when the Ministry of Commerce issued the second batch of rare earth export enterprises in September 2010. Obviously, the export qualifications of the 10 foreign-funded enterprises may be extended in 2011.
With China’s increasing attention to resource issues in recent years, coupled with strong calls for rare earth issues from all walks of life, after 2006, the rare earth industry’s unappreciated situation began to change. Since 2006, new rare earth mining licenses have been suspended and a mandatory plan for mining has been implemented. At the same time, China has also gradually strengthened the concentration of rare earth industries to achieve the purpose of protecting resources and the environment. Last year, global demand for rare earths was around 130,000 tons, and China's exports were about 72,800 tons, which accounted for 56% of them, and their share slightly decreased.
In 2010, the policy for the rare earth industry took heavy hits. On May 21, the Ministry of Land and Resources held a special action conference on the development of the rare earth and other mineral development orders. In the same month, the Ministry of Industry and Information Technology drafted "Environmental Access Conditions for the Rare Earth Industry" began publicity and set a threshold for the mining and smelting of rare earth minerals. The Ministry of Finance also announced recently that with the approval of the State Council, since January 1, 2011, the tax rates for China's import and export tariffs will be partially adjusted, and the export tariffs for individual rare earth products will increase. The tentative tax rate for other rare earth metals, antimony and bismuth that are not mixed or fused with each other is set at 25% next year; the temporary tax rate for other rare earth oxides exported is 15%.
Yao Jian said that next year China's export of rare earth quotas is still in discussions with relevant departments and will be announced to the market. China’s export policy for rare earths is closely linked to the industrial policies of rare earths. China’s basic policy for rare earth industry policies is sustainable development and protection of the environment. It is for this purpose that China has reduced the production and smelting of rare earths. And export scale.
Yao Jian also said that China’s rare earth exports have been reduced by 30%-40% this year, but it still achieved supply to major markets such as Japan, Europe, and the United States. The implementation of China’s policies has also been understood by the international community. In recent years, China has strengthened international technical cooperation. At present, China and the United States and Europe have energy conservation cooperation mechanisms to improve the level of mineral resources smelting technology; in addition, it will further promote multinational cooperation to find rare earth resources. China currently has 30% of rare earth reserves. However, trade volume accounts for 90% of the world's total. Hopefully, this phenomenon can be gradually improved.
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