China's Rare Earth Quota H2 2022
16 10 22 09:34
>80% of hard rock mining quota and >70% of finished products is China Northern based on the tailings from the Bayan Obo iron ore mine.
The total quota 2022 is 210,000 t TREO minerals and 202,000 t TREO for finished products, an increase of 25% over 2021.
The quota helps controlling domestic mining activities and it supports domestic resource preservation. The mining quota for ionic clay deposits has not increased in 3 years.
But for finished products the quota is not meaningful, because domestic REO production based on imported raw materials is not subject to this quota, whereby the actual output of finished products definitely far exceeds the quota, quite possibly by more than 70%.
Different from domestic rare earth raw materials, there is no resource tax on imported raw materials, which makes using imported raw material commercially more attractive.
Find the quota for H1 2022 here and the total quota for 2021 here.