40% Of China'S Rare Earths Could Smuggle Overseas &Nbsp; Bypass Export Quotas.

"2009 through normal channels

"There are oil in the Middle East and rare earth in China."

As a rare earth power, the Chinese government has paid close attention to every policy of rare earths. In order to further strengthen the international rare earth discourse power and integrate the domestic rare earth resources, the Ministry of Commerce increased the control of rare earth export since 2006, and reduced the export quota of rare earth.

However, there are policies and countermeasures. A few known "shortcuts" are being formed in the rare earth industry. These shortcuts can bypass the control of rare earth exports.

According to reporters, through these "shortcuts" drain rare earth is increasing sharply.

Smuggled exports account for 40% of total exports.

"We have attached great importance to the smuggling of rare earths, which has also attracted the attention of the relevant ministries and commissions of the country."

Recently, An Sihu, assistant director of Baotou rare earth high tech Zone Management Committee, told reporters.

It is understood that in 2006, China began to strictly control the export of rare earth resources, which led to a sharp reduction in export quotas. However, the rare earth resources known as "industrial MSG" have broad market demand, especially in the application of sophisticated industries, so rare earth has significant strategic significance.

One side is rare earth export control, the other is strong market demand. It is in these two aspects that rare earth smuggling is becoming more and more rampant.

In fact, since 2006, China's quota of rare earths has been decreasing year by year.

Public information shows that since 2010, the MOFCOM's export quota for rare earth products has been 30258 tons, down by 39.52% over the same period last year.

According to reporter's understanding, taking Baotou area as an example, a large number of pilferage of rare earth ore began in 2006. "Small ore dressing factories around Baiyunebo iron ore seem to be coming out overnight. The rise of rare earth prices has led many people to get involved in rare earths."

Baotou Steel Rare Earth related people said.

According to the Baotou Iron and steel rare earth related personages, in 2009, the rare earth resources that had flowed out of the country through abnormal channels have increased dramatically.

For the above Baotou Iron and steel rare earth related personages, a rare earth industry veteran agrees deeply. He told reporters that in 2009, China exported 50 thousand tons of rare earth, and smuggled more than twenty thousand tons in the country through the smuggling. The proportion of smuggling reached 40% of the normal export proportion, which was 10% more than that in 2008.

But for the industry veteran, the reporter failed to be confirmed from the authoritative department.

It is understood that smuggling is a multifarious way, there are false names of products, there are face to face tiles, marble declaration and so on.

The industry veteran told reporters, "in fact, the annual quota of state reduction is largely filled with smuggling. Since 2008, only more than 16000 tons of smuggled rare earth seized by various links have been found, including rare earth raw ore, rare earth oxides, rare earth metals and other resource products."

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By way of rare earth alloy

In fact, rare-earth smuggling is only one way to bypass rare earth quota control and allow rare earth to flow out of the country.

Little known is the way to separate rare earth alloys from rare earth elements, which is becoming the main way for the loss of rare earth metals abroad.

It is understood that China's distinction between rare earth raw materials and rare earth application products is determined according to the use of products. Popularly speaking, those that need processing can be regarded as resource products, such as rare earth oxides, and the products directly used as components are applied products.

The former is restricted by quotas and the latter is not restricted.

It is worth noting that the rare earth alloys have not been clearly defined. They are between rare earth materials and applied products, and rare earth alloys are not subject to quotas when they are exported.

Japanese media recently said that the US weapons system is widely used in rare earth products, such as communications systems, radar, avionics, night vision, fighter engines, missile guidance, electromagnetic countermeasures, mine detection, antimissile systems and other equipment, must use rare earth alloys.

Bao Jinghe, general manager of Gansu rare earth company, told reporters that rare earth elements are mainly combined with iron to form alloys. "But not all rare earth elements can be made into alloys. The Gansu side is mainly dysprosium ferroalloy, which is sold as raw material for Nd-Fe-B production."

Bao Jinghe also told reporters that alloys were not subject to quotas when they were exported.

It is understood that the domestic production of larger alloy varieties have dysprosium ferroalloy, silicon magnesium alloy, ferrosilicon alloy, these are all rare earth elements as raw materials, according to convention, whether it is domestic sales or export, the production of rare earth alloys are carried out in accordance with the order, including quantity and variety.

"The order of the previous year will determine the product demand for the next year, and the production of the alloy will change every year according to the order."

Lai Zhaotian, Secretary General of Ganzhou Rare Earth Industry Association, said in an interview with reporters that the annual output of rare earth metals in Ganzhou is 12000 tons, and the alloy is more than 5000 tons.

Insiders have told reporters that these alloys are likely to be separated and extracted from abroad. Especially the heavy rare earth elements, such as gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium and yttrium, which are unique to China, are salivating in many countries, even if they are separated into the same high. "Japan has begun to recover rare earth elements from mobile phones, which shows their importance, while the separation technology and cost of alloys are lower than that of mobile phones." 9.

An industry expert who declined to be named said.

It is understood that some "channels" for the export quota of rare earth exports have attracted the attention of the relevant ministries and commissions of the country. The rare earth "12th Five-Year plan" is being formulated, which will strengthen the contents of rare earth smuggling and rare earth alloy management and supervision.