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China Issues Regulation on Rare Earth Administration

The Regulation on Rare Earth Administration (稀土管理条例, hereinafter the “Regulation”), as adopted by the State Council on 26 Apr. 2024, shall come into force on 1 Oct. 2024.

Rare earth elements are critical strategic resources in modern industry. As a major country in rare earth resources and production, China supplies more than 70% of the world’s rare earth raw materials despite possessing less than 40% of the global resources. In recent years, China has introduced various policies and measures regarding industry access standards, industry consolidation, and environmental protection in the rare earth sector.

The Regulation, as the first regulation covering the entire rare earth industry chain in China, addresses multiple aspects such as production, circulation, and reserves, and provides regulatory authorities with the necessary tools, legal bases, and enforcement measures, so as to ensure a regulated market and improved industrial development environment.

The highlights of the Regulation are as follows.

  • Clear management of rare earth mining, smelting, and separation: the department of the Ministry of Industry and Information Technology, together with relevant departments, determines the qualified enterprises for rare earth mining and separation. No other organizations or individuals may engage in these activities.
  • Establish a total quantity control system: The state shall implement the total quantity control of rare earth mining and rare earth smelting and separation according to the reserves and differences in the types of rare earth resources, industrial development, ecological protection, market demand, and other factors, and optimize dynamic management.
  • Establish a product traceability system: Enterprises engaged in rare earth mining, smelting and separation, metal smelting, comprehensive utilization, and the export of rare earth products shall truthfully record the flow of rare earth products and enter such information in the traceability information system.

 

 

Photo by Lin Leyu on Unsplash

Contributors: CJO Staff Contributors Team

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