The price of rare earth product is still increasing now, and this growth trend might be unchanged within this year. Most of customers already felt the dramatic change of procurement cost. The reasons hiding behind the price soar already shown in our previous news.
The Rare Earth Office of MII of (Ministry of Industry and Information Technology of the People’s Republic China) set up a team to rectify rare earth industry order on June, and announced that the special crackdown action for illegal rare earth mined sources will be institutionalized and normalized. A serious of special crackdown action is regarded as an important reason of price soar.
According to Total Production Control Plan of Rare Earth, the rare earth mining volume is limited to 105000 tons/year, but additional 50000 to 60000 tons are flow into the market from illegal rare earth mined sources, also known as black mine. The illegal rare earth mined sources have natural advantages in tax revenue and environmental costs. Due to the existence of illegal rare earth mined sources, the price of rare earth product still can’t reach its reasonable price.
The environmental problems caused by illegal rare earth mined sources is also a huge important issue. The main form of environmental problem is water resources pollution.
The illegal rare earth mined sources didn’t have suitable sewage treatment plant. According to some reports, the rehabilitation expense for rare earth mine in Ganzhou, Jiangxi province about 5 billion dollars.
