Interpretation of the Notice on Continuously Strengthening the Order Rectification of the Rare Earth Industry

Translated with Google translate:

1. What is the background of the document?

In recent years, relevant departments and localities have continued to crack down on rare earth violations in accordance with the “Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of the Rare Earth Industry” (Guo Fa [2011] No. 12), and the industry order has continued to improve, but still faces individual regional supervision. Inappropriate, private digging, illegal and illegal production, more and more concealed, professional and other issues, the basis for the improvement of order is not stable, the development environment is more complicated. In order to further standardize the industry market order, create a good development environment, and promote the high-quality development of China’s rare earth industry, the Ministry of Industry and Information Technology, the Development and Reform Commission, the Ministry of Natural Resources and other 12 members of the Rare Metals Inter-Ministerial Coordination Mechanism jointly issued the “Continuous Strengthening” Notice of the Rectification of the Rare Earth Industry (No. 265, the Ministry of Industry and Information Technology [2018], hereinafter referred to as the “Notice”), clarifying the division of tasks, main objectives and implementation measures to strengthen the order of rectification of the rare earth industry, facilitating the formation of joint efforts between the central and local governments and strengthening Punishment of violations of laws and regulations.

 

2. What are the main tasks of the Notice?

Fully implement the spirit of the Party’s 19th and 19th Central and 3rd Plenary Sessions, promote the structural reform of the supply side of rare earths, focus on the key links of rare earth resource exploitation, total control plan, comprehensive utilization of resources, and product circulation. Strengthen the supervision and investigation of key issues such as the recycling of rare earth resource recycling projects, the implementation of production plans, the use of raw materials for resource comprehensive utilization, import and export management, establish a normalized working mechanism, and conduct supervision throughout the entire process of legal rectification and effectively implement the Group. Control responsibility and local supervision responsibility ensure that relevant work is put in place by strengthening organizational leadership, sound supervision mechanism, smooth reporting channels, and increasing penalties.

 

3. What are the new features of the Notice?

First, the division of labor is more clear. The responsibilities of the members of the Rare Metals Inter-Ministerial Coordination Mechanism, the competent departments of the provincial people’s governments, industry associations and the Rare Earth Group have been further refined. Second, the supervision is more effective and is carried out regularly at the required places. On the basis of self-examination, the first multi-sector joint supervision mechanism was established, and one special inspection was carried out every year to hold accountable for violations. Third, the content is more comprehensive, covering not only mining, smelting and separation, comprehensive utilization of resources and trade. The whole industrial chain links such as circulation also supplemented the contents of crushing ore, processing, monazite and imported ore. Fourth, the means are more abundant, including the use of satellite remote sensing technology to strengthen the monitoring of private excavation, illegal construction, etc., the introduction of rare earth metals into the special invoices for rare earths, and the implementation of the whole industry chain ticket management.

 

4. How to regulate the import of rare earth mines?

The “Notice” encourages domestic rare earth enterprises to strengthen international cooperation in accordance with the principle of marketization and regulate the orderly participation in the development and utilization of overseas resources. However, it is clearly stated that the import of rare earth minerals should comply with the mandatory requirements of the national technical regulations, and it is strictly forbidden to report false reports and import procedures. If the certificate is used in violation of laws and regulations, the rare earth group enterprises are required to standardize the procurement and processing of imported rare earth minerals, and the relevant information must be truthfully reported in the traceability system of rare earth products. At the same time, in response to the illegal production of rare earth mineral products by some rare earth enterprises under the name of “comprehensive utilization of resources” for unplanned production and disrupting the normal order of the market, the Notice further clarifies that any comprehensive utilization enterprise prohibits the processing of any imported minerals, including imported ore. Sources, any form of rare earth mineral products, must strictly follow the requirements of raw materials, processes, equipment, etc. in the project approval or filing documents, and carry out the recycling of secondary resources such as rare earth functional materials and device waste.

 

5. What are the requirements of the Notice for Rare Earth Groups and Intermediary Organizations?

The “Notice” requires the industry to continuously strengthen self-discipline. The Rare Earth Group should improve its management and control capabilities, strengthen internal enterprise supervision, strictly implement the regulations on total control of rare earth mining and smelting and separation, environmental protection, resource tax, special invoices for rare earth value-added tax, etc.; strictly control the newly added smelting and separation capacity, and improve the conversion rate of raw materials. To the development of new rare earth materials and terminal applications. Intermediary organizations should play an effective role in establishing a system of credibility in the rare earth industry and a social responsibility report for rare earth enterprises, regularly assessing the implementation of policies and regulations of member companies, and timely canceling the membership of enterprises with violations of laws and regulations; publishing reports and mailboxes on the portal. Enterprises and individuals who report violations of laws and regulations are rewarded.

 

6. How does the Notice inform the high-quality development of the industry?

On the basis of deepening the industry’s order rectification work, the Notice also clarified the main direction of improving the development quality of the industry from the aspects of promoting green and efficient development and actively promoting functional application. Continuously improve the technical specifications and standards for rare earth mining and smelting separation, establish a smelting and separating demonstration plant, build a high-level, movable and demonstrable ionic rare earth green mine, and strengthen the emission control and radiation safety supervision of rare earth enterprises. Encourage the development of deep processing application industry, improve the quality of rare earth new materials and intelligent manufacturing, promote the application of high-abundance elements, support the establishment of national-level rare earth functional materials innovation center, promote the rare earth new material suppliers to intervene in downstream product development, and promote upstream and downstream Industrial synergy development.

 

Source: MIIT – Raw Materials Industry Division
Related links: Notice of the 12 departments on continuously strengthening the order rectification of the rare earth industry
Date:  2019-01-04   

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