Recently, an announcement is jointly issued by Ministry of Industry and Information, Ministry of Public Security, Ministry of Land and Resource, Ministry of Environmental Protection, General Administration of Customs, State Administration of Taxation, Administration of Industry and Commerce and Administration of Safety and Supervision, which requires relevant regions to investigate and penalize illegal behaviors of rare earth .
It is understood that the abovementioned departments and Association of China Rare Earth Industry form four inspection teams heading for Anhui, Jiangsu, Hunan, Guangxi, Guangdong, Jiangxi and Sichuan, which perform an inspection on striking illegal behavior of rare earth in each place.
In recent years, relevant departments pay much attention to striking illegal behavior of rare earth industry. From August, 2013, seven ministries and commissions including Ministry of Industry and Information, Ministry of Public Security and Ministry of Environmental Protection carried out a special action for three months to strike illegal behaviors in exploitation, production, and circulation of rare earth.
However, after a year of cracking down on violation, a black industrial chain of rare earth gradually surfaces. In order to avoid the government’s supervision and regulation, some rare earth manufacturers which has been closed begin to transfer and continue illegal production, of which the output are surprisingly large.
In fact, the reason why these “black manufacturers” can produce illegally is that there is a huge demand in foreign countries. Those manufacturers are blinded by gain and totally overlook laws and regulations and safe of people.
Comparing with legal businesses of rare earth, the “black manufacturers” are more competitive. On one hand, those manufacturers secretly buy cheap raw materials from illegal mines. On the other hand, they are not restricted by mandatory production plan, which reduces a great deal of money invested in environmental equipment. Therefore, although they keep low price, they can also gain considerable profits.
Currently, the eight departments perform joint actions, which shock the illegal behaviors to some extent. But more important is that the relevant departments maintain high pressure to strike the illegal behaviors.
Permanent Magnets Manufacturer China Rare Earth Magnet Limited
Tags: China Rare Earth
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