The Ministry of Industry and Information Technology of China Announced First Draft on Entry Criterions for Rare Earths Industry

The Ministry of Industry and Information Technology of China issued on May 12, 2010 the Notice on Soliciting Public Opinions on Entry Criterions for Rare Earths Industry, delimiting a number of indicators for rare earths industry and open to public opinions for two weeks. According to the insiders, this marks the formation of the integrated catalyst in rare earths industry, to benefit the leading enterprises.

The Notice stipulates many aspects, such as production scales, technological equipments, energy consumptions, comprehensive utilization of resources, environmental protection, product quality, and supervision and management.

In production scales, it is stipulated that the annual disposition of ores for light rare earths mineral enterprises shall be not less than 300,000 tons (1,000 ton per day); the production capacity for ion-type rare earths mineral enterprises shall be not less than 3,000 tons (REO, in oxide) annually. The scale for smelting projects of rare earths metals shall be not less than 1,500 ton annually and so on. The minimum capital ratio of the above-mentioned fixed assets investment projects shall be 40%.

In techniques and equipments, the Notice demands a complete treatment system of the three wastes (waste gas; waste water; industrial residue), rare earths smelting separation projects shall not adopt techniques such as saponification of ammonia; in energy consumptions, it is required that the current efficiency for smelting projects of rare earths metals shall be more than 85%, the comprehensive energy consumption of the products per ton shall be less than 1.6 ton of standard coal, other projects shall apply to the new standards in the Energy Consumption Limitations for Unit Product of Rare Earths Smelting Enterprises to be issued; in comprehensive utilization of resources, the mining loss rate and dilution ratio for both mixed rare earths and bastnaesite shall be not more than 10%, the ore dressing recovery rate shall be not less than 72%, and the recycling rate of ore dressing waste water shall be not less than 85%.

According to the analysts, the breakthrough in the coming industry consolidation will be centered in South China, especially in rectifying the rare earths mineral rights in Sichuan Province, Jiangxi Province, Guangdong Province and so on.