China aims to complete restructure of its rare earth industry by mid-2016

February 16, 2016

February 16, 2016

The Chinese government has announced that its plans to restructure the country’s rare earth mining industry will be completed by summer 2016.

As the world’s largest producer and exporter of rare-earths, China has had a number of problems managing its resources. Companies flooding the market have led to over-capacity, which is blamed for falling prices, and there have been issues with illegal mining and smuggling.

“But beyond excess capacity, illegal mining and illegal production also have a huge impact on the industry. Certain raw ores are illegally dumped by individuals as recyclable materials, then later extracted. This has formed an illegal industry chain which has a very bad influence on the development of China’s rare earth industry. So, we need to crack down on that,” Chen Zhanheng, Vice Secretary General of China’s Rare Earth Industry Association, is reported by news service CRI as saying.

In 2014, the Chinese government singled-out six different rare-earth industry leaders, promising them support to create large rare-earth producers by buying-up small-scale operations.

At a recent meeting, Xin Guobin, China’s Vice-Minister of Industry and Information Technology, is reported to have said that consolidation is already underway. “To deal with current problems in China’s rare earth industry, we are consolidating and upgrading the industry in terms of production and mining procedures. So far, three firms have already formed rare-earth blocs, while another three are still working on it.”

Xin Guobin stated that it is the government’s hope this will be completed by the summer. “By the end of June we must complete the consolidation of all rare earth mines and firms in China. While this happens, we will continue to work with the companies through our various ministries to support the newly-formed rare-earth blocs, especially those who finish their consolidation on time. ”

The Ministry of Industry and Information Technology has stated that it expects there will be a reduction of rare-earth smelting this year through improved output controls and increased competitiveness. It was also reported that Chinese authorities stated that the country’s rare-earth industry will have the world’s best technology in use by the end of 2020.

February 16, 2016

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • From powder modification to rejuvenation: Fluidised Bed Reactors in metal powder production and Additive Manufacturing
  • Retech: Enabling the atomisation of reactive and refractory alloys at substantially higher levels of productivity and lower cost
  • Sustainability in Powder Metallurgy: Highlights from the 41st Hagen Symposium
  • Innovations from Japan’s Powder Metallurgy industry: award winners highlight novel automotive and healthcare applications

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link