Regulations on the Management of Rare Earths

The Rare Earth Management Regulations, which take effect from 1 October 2024, establish a framework for protecting and utilising rare earth resources in China. These regulations govern activities including mining, smelting, separation, metal smelting, comprehensive utilisation, product circulation and import-export of rare earth elements and products within Chinese territory.

The regulations emphasise that rare earth resources belong to the state, and no organisation or individual may occupy or damage them. The state implements protective mining practices and maintains unified planning for rare earth industry development through the Ministry of Industry and Information Technology in conjunction with other relevant departments.

Key operational controls include:

• Only designated enterprises may engage in rare earth mining and smelting separation
• Mining enterprises must obtain proper mining rights and permits
• Total volume control applies to mining and smelting separation activities
• Secondary rare earth resource utilisation is encouraged using advanced technology
• Comprehensive utilisation enterprises are prohibited from using rare earth mineral products as raw materials

The regulations establish strict environmental and safety requirements. Enterprises involved in rare earth operations must comply with relevant laws on mineral resources, energy conservation, environmental protection, clean production, safety production, and fire prevention. They must implement reasonable environmental risk prevention, ecological protection, pollution prevention, and safety protection measures.

A product tracing system will be implemented to strengthen management throughout the entire process. Enterprises must maintain accurate records of rare earth product flow and enter this information into the tracing system. The import and export of rare earth products, related technologies, processes, and equipment must comply with relevant foreign trade and export control regulations.

The regulations also outline a comprehensive supervision and inspection system, with authorities having the power to examine documents, conduct investigations, and seal locations or seize products related to illegal activities. Violations can result in substantial fines, suspension of operations, and potential criminal liability in serious cases.

Definitions are provided for key terms, including rare earth elements (comprising lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, and yttrium), as well as processes such as smelting separation and metal smelting.

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