The establishment of a rare earth strategic resource reserve system is imminent

Rare earths, as a key element in the development of new and high technologies, and an irreplaceable and scarce raw material in the defense industry, is regarded by all countries as one of the most important strategic resources for national security and development. China, as a country with the largest reserves, production, and supply of rare earths, is still far from adequate in terms of the level of development and utilization of rare earths. The rare earth is not a soil but sells a price for soil. In the "two sessions" this year, the rare earth problem has become a hot spot. Li Wei, member of the National Committee of the Chinese People's Political Consultative Conference, spoke in his speech on behalf of the CPPCC Population Resources and Environment Committee and the non-party faction, and members of the Chinese People's Political Consultative Conference and Chairman of the Hong Kong Mission Hero Group Zhu Shuhao --
Rare earth elements refer to the 15 elements of the lanthanide series in the periodic table of the elements plus the yttrium and lanthanum elements with similar properties. These 17 elements, collectively referred to as rare earths, have a wide range of uses. They have applications for civil economy, nuclear energy, and space programs. They are an important resource for the country’s survival and development. In addition to its worldwide shortage, rare earths are known as strategies. Resources. One of every five invention patents in the world today is related to rare earths. Of the 35 strategic elements identified by the United States and the 26 high-tech elements selected by Japan, 16 are rare earth elements with a ratio of 1/3. For this reason, the United States, Japan, and Other advanced countries in the world have almost all adopted legislative reserve strategic resources, especially strict controls on the mining, production, and export of rare metals. As the world's second largest country in terms of rare earth reserves, the United States has gradually stopped mining its rare earth resources since 1999.
China is a major country with rare earth resources. China ranks first in the world in rare earth reserves, production, consumption, and exports, and its output and supply account for more than 90% of the world total. At present, China's rare earth industry has formed two major production systems, North and South, based on resources and market trends: Northern China is a light rare earth product production system based on Baotou rare earth resources; South is a medium and heavy rare earth product production system based on Jiangxi plasma ore. In recent years, China's rare earth industry has been greatly developed, but it also faces a series of sharp contradictions and problems. Paying attention to rare earths, protecting rare earths, attaching great importance to rare earths as a strategic resource, and adopting effective control measures have become imperative. In 2006, the CPPCC National Committee for Population, Resources and Environment and the non-partisan group formed a research team to investigate and rationally develop and use rare earth resources in China.
Li Weihe and Zhu Shuhao said in their speeches that despite the fact that rare earth resources are concentrated in China, due to blind, disorderly, and excessively low level development, worldwide supply exceeds demand, prices are low, and valuable resources are destroyed. If this situation continues, China’s resource advantages will disappear. The main manifestations are as follows: First, excessive consumption of resource reserves, sustainable utilization and industrial safety concerns. The mining order is chaotic, and the comprehensive utilization of mining, selection, and smelting is low. According to calculations, according to the current scale of exploitation, China's proven southern ionized rare earth resources can only be mined for 14 years, and the Baotou mine's depletion period is about 50 years. The second is the overcapacity of primary products, the low price of export sales, and the long-term decline in micro-profits. As a result of low-level redundant construction, the production capacity has been excessively oversupply. More than 100 companies have pressed each other's exports. From 1990 to 2005, China's rare earth export volume has increased by nearly 10 times, but the average price has been reduced to 54% of the original price. The United States, Japan, and other countries have strategic reserves through the storage of rare earths and deep processing in China in return for high profits. China is a large country of rare earth industry, but it is a rare earth weak country without pricing power. Third, insufficient capacity for independent innovation and delayed application of product development. Most of China's rare earth products are low-end products, and the export volume of primary products accounts for 75% of the total output of rare earths. It is often that we sell primary products abroad at a low price, and buy high-end products made from our rare earths from people's hands at a price that is tens of times or a few hundred times higher.
The CPPCC National Committee for Population, Resources and Environment, and the non-partisan community, and Zhu Shuhao, recommend adopting necessary and necessary control measures to strengthen the management of strategic resources such as rare earths, give play to the strategic resources of rare earths, and safeguard the interests of the country. The first is to establish a system of strategic resource reserves. Starting from the strategy, we should pay attention to rare earths and protect rare earths at the national level. The second is to strengthen the organization and leadership, make overall plans for coordination, innovate rare earth industry management systems and mechanisms, and form a joint management force. It is recommended that the leadership of the State Council come forward to establish a rare earth work leading group or joint meeting system, be responsible for the coordinated planning and technological innovation of the rare earth work of relevant ministries and commissions, and introduce the “Eleventh Five-Year” development plan for the rare earth industry as soon as possible. The third is to use administrative and market methods to increase macro-control efforts, strengthen the management of rare earth and other strategic resources, and control overcapacity. The fourth is to accelerate scientific and technological progress, increase investment in scientific and technological research and development, formulate a national strategy for the intellectual property of rare earths, and establish and improve a high-tech independent innovation system with enterprises as the main body. Fifth, strict industry access thresholds, promote the joint reorganization of enterprises, strengthen and expand the rare earth industry. Research and formulate rare earth industry policies to prevent the entry of funds and technologies that do not meet the standards. At the same time, through "close, stop, and transfer, transfer" to speed up the elimination of excess production capacity, promote the joint reorganization of enterprises, build a joint fleet of rare earth enterprises, the establishment of "China's rare earth OPEC", in the market to form an absolute dominant leading enterprises This makes China dominant in regulating international rare earth market prices.

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