As the main origin of various metals, China does not control pricing; "guerrilla-style" development leads to the result that the sharp decline in reserves of rare metals

International Herald Tribune reporter intern reporter Deng Yuan Wang Xiaojie from Beijing recently, a counter-year bull market in precious metals market scene, prices began to fall. Analysis of the industry, which is largely due to oversupply.
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"China's basic metals in cost of sales." Association Central Liaison Committee, the Division of Science and Technology Co., Ltd., chairman of Union Carbide Yanshuang Li told the "International Herald Tribune", as the main origin of many metals, China does not control pricing "Rare is a strategic resource, widely used in aerospace and defense industry, construction, and reserves of rare metals is not much."

At present, China's wolframite has almost been gob, remaining scheelite can be mined for about 20 years, the world's rare earth reserves account from the previous 85% to the current 58%; data China Nonferrous Metal Industry Association, according to the given as at the present level of exploitation, 16 years recoverable molybdenum, zinc can be taken for 10 years.

Resources have been irretrievably lost, but we can avoid more losses.

Small miners eager to keep the prices down

"China's share of world reserves of indium 2 / 3,80% are exported to Japan and South Korea, are pricing their hands." Yanshuang Li could not help lamenting. Indium is widely used in the manufacture LCD TVs and military industries, producing highly sensitive missile seeker can not do without it. Indium peak price was 1,000 yuan / ton, while many people in the capital after the swarm, the price hit a four fold.

"The Middle East has oil, China has rare earths." This is Deng Xiaoping's southern tour in 1992 when arriving in Jiangxi "famous." However, from 1990 to 2005, Chinese exports of rare earths grew nearly 10 times the average price was down to 60% of the original.
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Zhang Anwen told the "International Herald Tribune", due to national attention, mining order to improve a lot, rare earth prices have rebounded more than the original, but in the South is relatively backward areas, indiscriminate exploitation of the phenomenon is still very serious. Local cities and counties rely on the development of resources to enhance the GDP, balance of supply and demand can not not be broken. In addition, the exploitation of rare earth policy threshold is too low, the state penalties for ecological damage also contributed to the chaos mined enough phenomenon. Zhang Anwen said the NDRC is studying the relevant industrial policies, improve mining access standards.

Export domestic prices soar

Indium, tungsten, molybdenum, tin, antimony, germanium, and rare earth metals outflow has attracted attention of decision-making. Since 2005, the state began to frequent use of tariff leverage and improve export threshold tungsten, rare earths, molybdenum and other rare metals products.

May 1, 2005, the state canceled the three types of rare earth products and molybdenum ores and concentrates export rebates and cut tungsten, antimony export tax rebate rate; the following year in November, the state has imposed on the rare earth oxides 10 % of export tariffs; June 18 last year, the Ministry of Commerce, General Administration of Customs began to implement export quota license management products for indium and indium, molybdenum and molybdenum products export; April 5 last year, the Ministry of Commerce, General Administration of Customs, the United released "2007 processing trade ban catalog" RE impressively in the head. November 7 of the same year, the National Development and Reform Commission, "Foreign Investment Industrial Guidance Catalogue" Commerce Department released a new revision of tungsten, tin and other metals completely banned foreign exploitation. Tungsten is an important raw material to manufacture weapons.

"Now the policy does not allow foreign firms in China to develop basic metals, originally built in our factory are often of foreign extraction of resources, then we sell at high prices, in fact, is tantamount to plunder resources." Yanshuang Li said. Now, however, China still imported from Japan and South Korea each year to import large quantities of rare metal products for the defense industry, "the export price of neodymium oxide in case of more than 20 tons of neodymium people to sell us, the price can only buy one kilogram."

Establish a strategic reserve system is the key
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Although the initial results of national policy, but 晏双利 that this is not enough, now the main metals of development mainly private capital, and in the case of state-controlled ineffective, "guerrilla style" development will be inevitable. And if China should establish a rare metal reserve system of strategic resources, you can order management, the use of rare metal resources.

In the Eleventh Five-Year "Plan" in 2006 established the Ministry of Land, "Land and Resources", the strategic resource reserves problem was officially included. "Plan" of resources and reserves were planning principles, proposed several resources required reserves, but a large number of rare metals which are not included, but also for how reserves are not defined in detail.

Metals mine once went 晏双利 research report submitted to the Association Central Committee entitled "Suggestions for the establishment of a national strategic reserve of mineral resources" in August 2006, suggested that the state establish indium, tungsten and other special metals minerals The strategic reserve, export control, rational use. During the last two sessions, the Association Central to the report is modeled to the CPPCC National Committee submitted a specific proposal.

"Japan, the United States imports a large amount of rare metals from China, as part of their own strategic reserves." Yanshuang Li said. Japan in the early 1980s on the development of rare metal reserves related laws, regulations of the state and some businesses must reserve a certain amount of vanadium, manganese, cobalt, nickel, molybdenum, tungsten, chromium and other metals, and require adequate reserves 3 consumption month to about six months.

US practice is more to China sounded the alarm: the United States ranked second in the world's rare earth reserves, but its largest rare earth mine in Mountain Pass mine has been sealed, the company has been largely discontinued molybdenum. In addition, Australia, Canada, the European Union and so has been to limit or stop the development of the country's rare metals from China imported resources as its own reserves.

"Now the prices of precious metals, it is a good time to building our strategic reserves of rare metal resources." Yanshuang Li recommendations.
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Data Figure: Some parts of the launch vehicle to meet the material needs of rare materials specific performance requirements

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Data Figure: The latest factory-made F-11B fighter

Indium, tungsten, molybdenum, tin, antimony, germanium, and rare earth metals outflow has attracted attention of decision-making. Since 2005, the state began to frequent use of tariff leverage and improve export threshold tungsten, rare earths, molybdenum and other rare metals products.


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Data Figure: radium powder

Although the initial results of national policy, but 晏双利 that this is not enough, now the main metals of development mainly private capital, and in the case of state-controlled ineffective, "guerrilla style" development will be inevitable. And if China should establish a rare metal reserve system of strategic resources, you can order management, the use of rare metal resources.

Jagged network to remind you: Click to enlarge
Data Figure: China also needs to produce various types of missiles metals

"Now the policy does not allow foreign firms in China to develop basic metals, originally built in our factory are often of foreign extraction of resources, then we sell at high prices, in fact, is tantamount to plunder resources." Yanshuang Li said. Now, however, China still imported from Japan and South Korea each year to import large quantities of rare metal products for the defense industry, "the export price of neodymium oxide in case of more than 20 tons of neodymium people to sell us, the price can only buy one kilogram."


Jagged network to remind you: Click to enlarge
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