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Ganzhou rare earth companies stop production to rectify environmental problems
Release Date: 09:56 April 09, 2021 Source: Internet


Belonging to the iron alloy series: rare earth, rare earth magnesium silicon, rare earth silicon, rare earth ore, rare earth oxides, rare earth metals, phosphors, polishing powders, neodymium iron boron
Summary of content: Insiders told the Global Times that about% to% of rare earth companies in Ganzhou City, Jiangxi Province in eastern China ——most of...

Industry insiders told the Global Times that about 40% to 50% of rare earth companies in Ganzhou City, Jiangxi Province in eastern China-mostly located in the middle and lower reaches of the industrial chain-have recently ceased production in order to rectify environmental protection issues.

Ganzhou is China's main rare earth production base. As the rare earth export suspension is expected to last until the end of April, industry analysts predict that the shortage of rare earths and the logistics problems of rare earth exports from Myanmar may further restrict China's rare earth exports in April and may push up prices.

On Thursday, a manager named Yang of a state-owned rare earth company in Ganzhou told the Global Times: “One of our rare earth waste processing plants ceased production at the end of March.”

The shutdown was carried out before the Central Government's Fourth Ecological and Environmental Protection Inspection Team arrived in Jiangxi. The inspection team will visit Jiangxi from Wednesday to May 7. This team will investigate the local environmental protection work.

According to local industry sources, nearly half of the rare earth producers in Ganzhou have stopped production. Some companies, such as Yang's company, closed down before the group arrived to solve environmental problems.

According to industry insiders, part of the reason for the sudden closure of the factory was round-the-clock production, which resulted in "serious environmental impacts" such as excessive discharge of sewage.

“Since October last year, all rare earth manufacturers in Ganzhou have been operating at full capacity to take advantage of the surge in orders to make up for the losses suffered during the coronavirus outbreak. Most of them did not rest even during the Spring Festival holiday, exacerbating environmental problems,” A manager of a state-owned rare earth company who asked not to be named told the Global Times on Thursday.

The manager added that most of the suspended facilities are factories specializing in the sorting of rare earth waste, which is a key procedure for processing rare earth oxides that may cause the greatest pollution to the environment.

"It is necessary to comply with environmental regulations in daily work. Those companies that strictly abide by environmental regulations are still operating as usual."

The Global Times also learned from several major rare earth magnet manufacturers in Ganzhou that their production has not been affected.

It is unclear when these factories will be able to resume operations. Some industry insiders predict that they will be able to resume work when all environmental problems are resolved by the end of April.

According to local media reports, due to the shutdown of the plant, the supply of neodymium praseodymium oxide, the key rare earth oxide for making permanent rare earth magnets, may be reduced by 1,200 tons per month.

Wu Chenhui, an independent observer of the rare earth market, told the Global Times on Thursday that the slump in the supply of rare earth oxides will have a "phased impact", pushing up prices in the short term.

"But if production is suspended for more than one month, the impact may also spread to all parts of the world, putting pressure on global supply," Wu said.

Customs data shows that from January to February, China's rare earth exports soared by 28.8% year-on-year, reaching 7068 tons.