Under pressure "Japan-US counter-measure": China's rare earth role adjustment

Restructuring the control of rare earths in China has become a plan that must be put into action.

Recently, the United States, Japan and other countries have accused China of further reducing rare earth export quotas and production. The Chinese Ministry of Commerce has made it clear that China cannot continue to assume the role of supplying the world.

On October 16, Su Ning, director of the Industrial Products Division of the Foreign Trade Department of the Ministry of Commerce, publicly stated in Beijing that China's rare earth reserves fell 37% between 1996 and 2009, leaving only 27 million tons. According to the current production speed, China's medium and heavy rare earth reserves can only be maintained for 15 to 20 years, and it is not excluded that one day it needs to rely on imported rare earths.

Suining’s words once again hinted that China will continue to cut rare earth production. In this regard, the United States and Japan, which are highly dependent on rare earth imports, have joined forces with other countries to pressure China to relax its rare earth export policy, and accused China of using government power to restrict exports and undermine free trade. On the other hand, high-profile release "actively looking for alternatives." News of China's rare earth supply source.

On the 15th, Toyota Tsusho, a comprehensive trading company of the Toyota Motor Group of Japan, revealed that it will build a rare earth refinery in eastern India. The plant will start construction at the end of the year and is expected to be put into operation in the fall of 2011. This move is intended to broaden the procurement channels for rare earths.

In addition, the United States also reported the news of restarting rare earth mines.

On the 18th, a person from the China Rare Earth Society told this reporter that Japan and the United States are planning to take further pressure on China to require China to relax its rare earth exports, but China has every reason to further reduce rare earth exports. At the same time, the rectification of the domestic rare earth industry will be more stringent.

Massive reduction of rare earth exports
According to the public data of the US Geological Survey, in the two years of 2008 and 2009, the world's rare earth ore mining volume was 124,000 tons, of which China's mining capacity was 120,000 tons, accounting for 96.8%.

This means that most of the rare earths consumed by the world come from China, and also provide a basis for the saying that “the world of rare earths is king of China”.

In fact, in terms of rare earth resources, China's output and exports can be king in the world, but China is not the only one in terms of rare earth reserves. According to public data, the proven reserves of rare earths in the United States reached 13 million tons, the proven reserves in Russia were 19 million tons, and the proven reserves in Australia were 5.4 million tons.

In a public speech on the 16th, Suining said that China is not the only country in the world with rare earths, but has assumed the role of supplying most of the world's rare earths in the past few decades. As a result, it has suffered from destroying its natural environment and consuming its own resources. cost.

Lu Zhiqiang, deputy director of the Development Research Center of the State Council, said that every 1 ton of rare earth mined in the pool dipping process would destroy 200 square meters of surface vegetation, strip 300 square meters of topsoil, and cause 2000 cubic meters of tailings, causing 12 million cubic meters of water and soil each year. Loss.

Since China supplies more than 90% of the world's demand with 30% of the world's rare earth reserves, China has gradually reduced its rare earth exports since 2006.

According to the 2010 rare earth export quota document issued by the Ministry of Commerce, the total number of rare earth export quotas for 2010 was 30.258 million tons, which was nearly 40% less than the 5.01451 tons in 2009.

In early July 2010, China announced that it would reduce its rare earth exports by 72% in the second half of 2010. This is the first time China has reduced its rare earth exports.

When the restriction policy came out, countries led by the United States and Japan publicly accused China of undermining the spirit of free trade. The Japanese Foreign Minister also made an official protest during his visit to China, saying that the sudden reduction of rare earth exports "is affecting the global production chain."

On October 15, Yao Jian, a spokesman for the Ministry of Commerce, said at a regular press conference that China’s restrictions on the exploitation, production and export of rare earths are in line with international norms and domestic laws, with the aim of protecting the environment. China will not Use rare earth exports as a means of blockade.

US-Japan counter-measure
At present, in the face of China's efforts to strengthen rare earth mining and export control, the United States and Japan exert diplomatic pressure on China on the one hand and other sources of rare earth on the other.

According to the Asahi Shimbun report, the Japanese government decided to increase its efforts to find resources on a global scale. The report said that Japan plans to invest 1.2 billion US dollars to improve the supply of rare earth. Japan has also reached an agreement with Mongolian Lightning to develop rare earth resources in Mongolia.

On October 18th, our reporter learned from an industry insider that the Australian rare earth company Lynas, which was originally abandoned by China National Stock Co., was also taken by Japanese companies. Lynas will provide rare earth resources for Japan.

Japan also released a high-profile news, claiming to develop new technologies, recovering rare earths from used electronic products, and turning Japan into a rare earth recycling center.

On the 18th, in returning to this reporter's e-mail, the US Steel Association stated that China, as a major rare earth country, has adopted various export control measures, which reduced the export quota of rare earth elements in 2010 by half. This has pushed up international prices and made foreign companies have a serious shortage of raw materials.

Therefore, the US rare earth industry is calling on the US government to reopen the Persian rare earth mine that has been sealed for ten years and to restore and rebuild the rare earth resources in the United States and other western countries.

However, it will take time for the United States, Japan and other countries to break the status quo of China’s 97% resource in the global rare earth market. In the short term, the United States and Japan will continue to force China to relax its rare earth export policy.

On the 12th, Japan’s Minister of Economy, Trade and Industry, Otsuka, said that China’s customs procedures for exporting rare earths to Japan are still severe and the situation has not improved. Japan will consider directly requesting China to take appropriate measures on the 18th.

The above-mentioned Chinese Rare Earth Society official told this reporter that the US and Japan will continue to exert pressure on China, and even do not rule out similar trade counter-measures against China, but China's position on the rare earth export policy should not change.

Must be outside
In China, the rare earth industry is recognized as a “chaotic industry”.

An insider of Minmetals said that when various domestic central enterprises entered the rare earth industry one after another, they sighed: "In an industry that is so chaotic, how can everyone come to this water?"

On the 17th, Zhang Guobao, deputy director of the National Development and Reform Commission and director of the National Energy Administration, said at the press conference that China is indeed rich in rare earth resources, but our rare earth enterprises are very numerous, and the export is also very chaotic. The rare earths are really selling soil prices. This fact is there.

The chaos of rare earth exports is mainly manifested in smuggling. According to estimates, in 2009, smuggling and exiting more than 20,000 tons, accounting for about 1/3 of the actual export volume.

According to the above-mentioned rare earth society, at present, the Customs is intensifying efforts to crack down on smuggling, and is formulating a new method of seizure against rare earth smuggling. Among them, professional inspection methods are expected to be utilized.

“There are hundreds of rare earth raw materials, each of which has a different appearance. It is easy to mix and pass. If you add professional inspection, it will be easy to find out,” said the person.

In response to the problem of rare earth mining chaos, the above-mentioned sources revealed that China's establishment of a rare earth reserve system has also been considered. At present, Baotou Steel Rare Earth has initially established a rare earth reserve system.

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