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There will be only one upstream 36 companies in Inner Mongolia to open the rare earth integration curtain.
Recently, the General Office of the Inner Mongolia Autonomous Region Government issued the “Inner Mongolian Rare Earth Upstream Enterprise Integration and Elimination Work Plan†formulated by the Autonomous Region’s Economic and Information Committee, and carried out 35 rare earth upstream enterprises in Hohhot, Baotou and Bayannaoer cities that have been included in the integrated elimination scope. reorganization of cooperation, close and compensation for shutting down, the Baotou rare Earth high Technology Co., Ltd. in northern China allowed to become engaged in rare earth industry upstream run "only child." Analysts said that the integration of the rare earth industry has been opened. If the "Baogang Rare Earth" franchise has substantial progress, it will play a demonstration role in the integration of rare earths. The smelting and separation capacity will expand too fast, and the competition between enterprises will be "dislocated." At present, the supply of rare earths exceeds demand. At present, China's rare earths have accounted for about half of the world's industrial reserves, and the supply accounts for more than 95% of the world. Baotou Bayou Obo rare earth mine has early exploration and large reserves. In addition, it is associated with iron ore and has low mining cost. It has long been favored by the market. In the past few years, a large number of rare earth upstream enterprises have poured in a lot of parts, resulting in a sharp increase in the amount of rare earth mining and exports, and a serious overcapacity. "According to the current production scale, only Baotou Steel Rare Earth is sufficient to complete the Ministry of Land and Resources's total mining control index, the Ministry of Industry and Information Technology's mandatory production plan and the Ministry of Commerce export quota." Liu Jingchun, deputy researcher of the Raw Materials Industry Department of the Inner Mongolia Autonomous Region. After becoming the world's largest production base and supply base for rare earth raw materials, the “one big†supply has not been exchanged for the right to speak and pricing. On the contrary, the smelting and separation capacity expansion is too fast, and the competition between enterprises is “dislocatedâ€, which causes the supply of rare earth to exceed demand, and the price is low for a long time. Russia, the United States, Australia, Canada, India and other countries once closed the mine for the sake of low cost and protection of their own resources, and took the "fisher's benefit" of internal competition of Chinese enterprises. “Industry integration is imperative.†Xing Bin, deputy general manager of Baotou Steel Rare Earth High-Tech Co., Ltd., is blunt, “The only way to rectify rare earth resources is to strengthen the implementation of total rare earth development control indicators. Development, directional and quantitative supply, while promoting the reserve of resources.†After the integration of Baosteel Rare Earth into the “single seedling†of the northern rare earth upstream enterprises , Baotou Steel Rare Earth became the northern part of China without any suspense based on factors such as scale and strength. The “single seedlings†that have been retained among many rare earth upstream enterprises. Xing Bin introduced that as the largest single rare earth production and processing enterprise in China and the world, Baogang Group, the controlling shareholder of Baotou Steel Rare Earth Co., Ltd., owns the world's largest rare earth mineral deposit, and its “innate conditions†are unparalleled. At the same time, for comprehensive development and utilization of rare earth resources, Baotou Steel has already begun the pace of integration. In 2007, the overall listing of the Baotou Steel Rare Earth Industry was realized. In 2008, it acquired a 51% stake in local key enterprises and hair companies. In 2009, it acquired a 44% stake in Beijing Sanjili Company. In 2010, it entered the southern rare earth and successfully realized the equity cooperation with the three companies, achieving a historic breakthrough in the cooperation between the north and south rare earth industries. In this new wave of integration, rare earth mining and smelting and separating enterprises other than Baotou Steel Rare Earth Company in Inner Mongolia Autonomous Region are the targets of this integration, and a total of 35 enterprises have been included in the integration elimination scope. Most of these enterprises have problems such as backward technology, poor environmental protection, and serious waste of resources. “By integrating and eliminating the upstream enterprises of rare earths, the franchise system for rare earth smelting and separation, which is unified mining, unified mineral processing, unified smelting, unified management and management by Baotou Iron and Steel (Group) Co., Ltd., will be formed, in line with the needs of sustainable development of national rare earth strategy. "The Director of the Inner Mongolia Autonomous Region Economic and Information Committee, Tosanin said. "The autonomous region has issued a plan for the integration and elimination of rare earth upstream enterprises, which must be completed by the end of June." Liu Jingchun introduced. "The future work will focus on the development of rare earth application industry, using rare earth application industry as the carrier, and taking scientific and technological innovation as the driving force to introduce rare earth new materials and application projects with high-tech content, high industrial relevance, high input intensity and high output density. Li Xing, deputy director of the Rare Earth Industrial Park Construction Management Office of Baotou Rare Earth High-tech Zone, said, "Our goal is to achieve local conversion of about 80% of mineral products and promote the development of the industry through the application of products."