Ministry of Industry and Information Technology Enacted Regulations on Rare Earth Production

2012-07-02 22:07 Source:China Securities Journal

On 28th, Ministry of Industry and Information Technology(MIIT) enacted provisions regulating the controlled production of rare earth. Regulations made it clear the enterprises without quota are forbidden to engage in rare earth production and those who engaged in illegal production will be shut down. For those firms with production over the quota, provincial government will order them stop the production and reduce their quota during the 2nd quarter of the year.

 

This is the first time MIIT enacted regulations regarding rare earth production after the a 2007 law which made rare earth production under the quota. “The new regulations are more practical than the previous ones and have detailed guidance on some matters too.” A correspondent in MIIT told the reporter from China Securities Journal.

 

According to the new regulations, MIIT will make plans with regards to rare earth exploration, production and export/import based on domestic and international market demands as well as inputs from other government agencies. Such plans have to be approved by State Council and included in the national economical development plan. Without quota, any firms are forbidden to engage in rare earth mining and rare earth products refinement.

 

New regulations also demand provincial industry management agencies to beef up their law enforcement efforts to shut down illegal firms and prohibit any firms engaging in production without quota. Such agencies also need to coordinate with other government agencies such as Ministry of Land and Resources, Environmental Protection, Industry and Commerce, Tax and Safety Inspection to ensure the offenders be punished accordingly.

 

At the same time, those firms which engaged in overproduction will be ordered by the provincial industry management agencies to stop production with warnings and reduce their quota in the 2nd half of 2012.

 

In order to integrate rare earth exploration, investment management and export, government has made rare earth production a state controlled business instead of common commercial business. “Rare earth management requires coordination from various constituents, the new regulation is only part of the many regulations we are going to use to achieve this goal.” An MITT correspondent pointed out.

 

It is said the first batch of quota of this year has already been assigned to individual firms by the provincial governments.