TapTechNews July 1st, according to the news, on June 29th, the State Council of China announced the 'Rare Earth Management Regulations' (hereinafter referred to as the 'Regulations'), which will come into effect as of October 1st, 2024.
Rare earth elements (English: rare-earth element, REE), or rare earth metals, refer to a combination of a total of 17 metallic chemical elements in the scandium, yttrium, and lanthanide series of Group 3 in the periodic table. Rare earth elements have diverse and extensive applications in fields such as electrical and electronic components, lasers, glasses, magnets, and industrial and chemical catalysts.
Article 4 of the 'Regulations' stipulates that rare earth resources belong to the state, and no organization or individual may seize or damage rare earth resources. The state strengthens the protection of rare earth resources according to law and implements protected exploitation of rare earth resources.
Recently, the responsible persons of the Ministry of Justice and the Ministry of Industry and Information Technology answered reporters' questions regarding relevant issues. TapTechNews attaches the following key points of the official complete records:
Rare earth is an indispensable important element and key strategic resource in modern industry. In recent years, China has introduced a number of policies and measures regarding rare earth industry access standards, industry consolidation, environmental protection, etc., which have effectively promoted and guaranteed the sustainable and healthy development of the industry.
At the same time, there are still some prominent problems in China's rare earth management. The management responsibilities covering the entire industrial chain need to be improved, and the regulatory measures are to be perfected. The industrial innovation ability and the level of greening and intelligentization need to be urgently enhanced, and the industry order needs further regulation. The means and penalties for cracking down on illegal mining or illegal smelting separation, production without indicators or beyond indicators, trading of illegal rare earth products and other illegal acts are insufficient. Therefore, it is necessary to formulate special administrative regulations to provide legal guarantee for the protection of rare earth resources and industrial development.
The 'Regulations' stipulate the following provisions on the responsibility of rare earth management:
First, clarify the division of responsibilities among departments. The competent department of industry and information technology under the State Council is responsible for the management work of the rare earth industry nationwide and studies, formulates, and organizes the implementation of management policy measures for the rare earth industry. Other relevant departments such as the department of natural resources under the State Council are responsible for rare earth management-related work within their respective scopes of responsibility.
Second, compact the responsibilities of local governments. The people's governments at or above the county level are responsible for the relevant work of rare earth management in their regions. The relevant competent departments of industry and information technology and natural resources of the people's governments at or above the county level perform the relevant work of rare earth management in accordance with the division of responsibilities.
In terms of the entire industrial chain supervision system of rare earth, the 'Regulations' stipulates from five aspects:
First, clarify the management requirements of rare earth mining and smelting separation. The competent department of industry and information technology under the State Council, in conjunction with relevant departments, determines rare earth mining enterprises and rare earth smelting separation enterprises. Other organizations and individuals may not be engaged in rare earth mining and rare earth smelting separation.
Second, establish a total quantity control system. The state conducts total quantity regulation on rare earth mining and smelting separation according to factors such as rare earth resource reserves and types, industrial development, ecological protection, and market demand, and optimizes the dynamic management.
Third, regulate the comprehensive utilization of rare earth. The comprehensive utilization enterprises of rare earth may not use rare earth ore products as raw materials for production activities.
Fourth, establish a product traceability system. Enterprises in rare earth mining, smelting separation, metal smelting, comprehensive utilization, and export of rare earth products shall truthfully record the information on the flow direction of rare earth products and input them into the rare earth product traceability information system.
Fifth, strictly regulate the circulation management. No organization or individual may purchase, process, sale, or export illegal rare earth products obtained through illegal mining or illegal smelting separation. The import and export of rare earth products and related technologies, processes, and equipment shall comply with the provisions of relevant foreign trade and import and export management laws and administrative regulations.
In Article 21 ['No indicators or exceeding indicators for mining and separation'] and Article 22 ['Illegal smelting separation'] and Article 23 ['Illegal sales'] of the 'Regulations', the original penalty of 1 to 5 times the fine was raised to 5 to 10 times the fine, and the fines for related minor violations have also been increased.