China has known that its rare earth industry still suffers seriously from pollution, smuggling as well as illegal mining. Rare earth elements provide lively functions in all modern day technologies, and China holds an almost comprehensive monopoly.
March 21, 2014 (Newswire) - Despite a two year campaign directed at cleaning the sector and removing all illegal operations, China has known that its rare earth industry still suffers seriously from pollution, smuggling as well as illegal mining. Rare earth elements provide lively functions in all modern day technologies, and China holds an almost comprehensive monopoly of the market.
China is producing more than 90% of the rare earth metals in the world and the government has tried to consolidate output under the control of 6 large state-owned miners, and have set severe production and export quotas on a small number of approved firms. The great, developed economies of Europe, Japan, and the United States have all submitted objections to the World Trade Organization that ChinaЎЇs actions are restricting supply of the vibrant rare earth elements to the worldwide market, and thereby giving Chinese technology firms an enormous reasonable benefit.
Currently the local governments have once more been ordered to clean up unlawful activities even stricter rules to be released presently. Unlawful production and smuggling still dog the rare earth industry in China despite a long operation to clean up the sector, subsidizing to a supply glut that has dejected worldwide prices.
In 2013 actual output of rare earth ore production in China was 80,400 metric tons, while the total REO output of rare earth smelting as well as splitting production was 83,300 metric tons, accounting for 85.7% and 92.1% of its intended production respectively. The rare earth industry revenue was near to RMB 76.9 billion Yuan last year, an every year development of 7.9%, but total industry profits fell 28.1% to RMB 7.74 billion Yuan, primarily caused by falling prices. In the last year, Chinese government carried out a special operation to crack down on rare earth smuggling, during which it chased down 2,330 tons of smuggled rare earth products metals, valued at RMB 52.20 million Yuan in 5 cases.