SMM, February 19: To implement the "Rare Earth Management Regulations," effectively protect and rationally develop and utilize rare earth resources, safeguard ecological security, and promote the high-quality development of the rare earth industry, the Department of Raw Material Industries of the Ministry of Industry and Information Technology has drafted the "Interim Measures for the Total Volume Control and Management of Rare Earth Mining and Rare Earth Smelting and Separation (Draft for Public Comments)" and the "Interim Measures for the Traceability Management of Rare Earth Products (Draft for Public Comments)."
From the perspective of total volume control, the "Interim Measures for the Total Volume Control and Management of Rare Earth Mining and Rare Earth Smelting and Separation (Draft for Public Comments)" clearly states that the Ministry of Industry and Information Technology will collaborate with relevant departments to identify and publicly announce compliant enterprises for rare earth mining and smelting and separation. Except for specifically approved enterprises, other organizations and individuals are prohibited from obtaining rare earth mining quotas and conducting related production activities. This initiative aims to protect rare earth resources, prevent excessive and illegal mining, avoid resource overconsumption, and promote the sustainable utilization of rare earth resources. In the past, due to insufficient regulation, some enterprises engaged in disorderly mining of rare earths, leading to resource waste and ecological damage. By introducing total volume control measures, resource extraction can be reasonably planned, ensuring sufficient resource reserves for future development while meeting current demand.
The total volume control measures effectively curb illegal production at the source by restricting production entities and setting production quotas, thereby standardizing the sources of rare earth products in the market. Meanwhile, the "Interim Measures for the Traceability Management of Rare Earth Products (Draft for Public Comments)" require rare earth enterprises to establish a product flow record system, detailing the circulation information of rare earth products and inputting the relevant data into the traceability system by the 10th of each month. This initiative not only enhances transparency in the circulation of rare earth products but also enables the rapid tracing of the source when illegal products enter the market, effectively combating illegal transactions, maintaining market order, reducing speculative activities, stabilizing rare earth product prices, and promoting the coordinated development of the upstream and downstream industry chain.
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At the same time, SMM believes that under the impetus of the total volume control policy, enterprises will face stricter production quotas, requiring them to move away from traditional extensive production expansion and instead increase investment in technological innovation and resource utilization efficiency. To achieve higher economic benefits within limited quotas, enterprises are actively engaging in R&D of new processes and technologies, enhancing the added value of rare earth products, and driving industrial upgrading from low-end to high-end. Furthermore, the traceability management measures for rare earth products also encourage enterprises to improve their information management capabilities and establish internal rare earth traceability systems. This initiative will drive innovation and development in the management models and technological applications of the entire rare earth industry, further enhancing the industry's green and intelligent development.
From the perspective of strategic security, by implementing total volume control on rare earth mining, smelting, and separation, as well as enforcing product traceability management, China can more effectively control this strategic resource, provide support for the country's economic and national defense security, and secure a strategically advantageous position in international competition.
