Industry news

The Middle East has oil, and China has rare earths. This is an important statement made by Comrade Deng Xiaoping regarding China's rare earths. Nowadays, a considerable number of rare earth enterprises in our country talk about these two sentences, but overlook the latter two sentences - we must do a good job in rare earth affairs and give full play to China's rare earth advantages. On the morning of October 18th, during the rare earth industry planning and promotion meeting and the mobilization meeting for rectifying the rare earth order, Jia Yinsong, inspector of the Raw Materials Industry Department and director of the Rare Earth Office of the Ministry of Industry and Information Technology, interpreted the recently released "Development Plan for the Rare Earth Industry (2016-2020)" and pointed out that these last two sentences are precisely the significance of the release of the "Plan".

The largest rare earth enterprise in the United States, American Molybdenum Mining Company, is facing operational difficulties. Its closing stock price fell 35.3% on March 17th, and its current stock price is only 48 cents, compared to its highest point in 2011 of $80 per share. The US audit agency has questioned the company's ability to continue operations, and the molybdenum mining company stated that it is currently undergoing debt restructuring, and if the restructuring fails, there may not be enough funds to sustain operations.

On December 18th, according to the "2014 Tariff Implementation Plan" released by the State Council Tariff Commission on December 16th, export tariffs on rare earth, tungsten, and molybdenum related products have not been lifted. Legal professionals involved in the WTO's rare earth ruling lawsuit on Weibo told Da Zhihui News Agency on Thursday that China has reached an enforcement agreement with the United States, Japan, and Europe, and will enforce the WTO ruling by mid-2015. This means that export tariffs on rare earth and other products will be lifted at that time.

The strong expectation of policy dividends, coupled with the imminent arrival of a new round of spot deposits, may help the rare earth sector to rise again. A-shares have already taken the lead in responding: data from the Shenzhen Stock Exchange's Dragon and Tiger List shows that among the top five positions with the highest amount of purchases of Minmetals rare earths yesterday, institutional seats occupied four.

On June 4th, Bloomberg published an article titled "China's Rare Earth" Time Poison Bomb Boosts Global Rare Earth Mining Heat ". The report stated that China monopolizes 90% of the global rare earth market. In recent years, with increasing environmental pressure and the impact of the WTO rare earth dispute, China has begun to strictly control rare earth production and exports. The international market is facing tight rare earth supply, and prices have been continuously rising. Countries are turning their attention to places outside of China, leading to a global" rare earth mining boom ". Bloomberg predicts that the total investment in new rare earth mines in various parts of the world, except for China, may reach 12 billion US dollars.

After the WTO ruled against China in the rare earth case, it seems that Western countries such as the United States and Japan can once again obtain a large amount of cheap rare earth resources in China without taking any responsibility for environmental damage. For this reason, we don't have to worry too much. In order to protect our country's environment and resources, we can adopt a strategy of "using barbarians to control barbarians" and let their dreams