the sources of Smuggling of rare earth are including pirates,...

the sources of Smuggling of rare earth are including pirates, illegal production capacity, and you said of collusion modus,etc.

due to some historical reasons, Baotou's rare earth ore as an open storage, very easy to steal, "external theft" always be a major problem.

Baotou's general manager, Zhang zong in an interview 17/6/2013:

in order to manage the source of Baotou's rare earth resources, we take various measures to care our ore,
even once we have suggested that wants the government to send armed forces to guard.

"If there were armed police custody, We have more confidence to monopolistic control the rare Earth in northern China or even the global light rare earths. "
---(Zhang's original words)