CMNLTD proposed stopping production

Nowadays, the China Min metals Non-ferrous Metals (CMNLTD) proposed stopping production actively, which reveals the hidden rules in this industry. The proposal aroused great disturbance of the world.

Someone inside claims that there will be few enterprises truly stop production for facing the pressure from the environmental verification and the restriction of the output. The behavior of CMNLTD reveal the status quo that the relative polices will not execute effectively in this industry.

The Ministry of Land published the note about controlling the sum of exploring quotas of tungsten, antimony and rare earth minerals in March, 2011. The information from inside said the quotas had already accomplished at the end of July.

As a general logic, it does not need the companies to proposed, as the enterprises would stop production when the quotas have been accomplished. The expert Chen zhanheng said, however, because the inadequate supervision, the rare earth always been explored excessively.

The materials show that the output of the rare earth was over 100 thousand tons for 5 years since 2005, but the quotas were just 80 thousand tons in average.

Wang Guozhen, the former vice president of China Nonferrous Engineering and Research institute, said, the reason why the enterprises and the local government cannot execute polices of exploration is the high price of the rare earth.

The proposal of the CMNLTD actually told the outside that polices made by government were hardly executed within this industry, and this enterprise was trying to approach the national polices.

Source: China Securities Journal

Translated and editied by Yang Jingmin

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