Shandong Province, the only production base of rare earth resources - Shandong Weishanhu Rare Earth Co., Ltd. (hereinafter referred to as "rare earth Weishanhu") from early December 2008 to start production. "Winter" in Weishanhu has been working with the China Rare Earth Rare Earth, Inner Mongolia Baotou Rare Earth, Gansu Rare Earth, such as several rare-earth talk processing enterprises in joint venture with a view to stage a comeback.

Start losing money as production

     According to the Chinese Rare Earth Society of Under-Secretary-General Zhang Wen, China rare earth reserves and output ranked first in the world, but the rare earth industry by the international market demand, the impact is very clear, coupled with China's no pricing power rare-earth, disorderly competition led to declining market prices. Since the last century since the 80's, China started large-scale mining, processing of rare earth, a similar predicament in the past 20 years has repeatedly staged. Market good, large and small manufacturers are to mining, processing, market not on the production. In this way, a good life can be sustained in 2012, when a bad stretch in 2034.

     Weishanhu rare earth is found in the country currently 3 large light rare earth base, with China the only USA Edmonton Scopus similar rare earth mineral deposits, for the typical LREE. The initial mining of rare earth proven reserves of 12,750,000 tons oxides, rare earth oxides for mining 2,550,000 tons. Production before the annual output 40,000 tons of ore the original, multi-grade Rare Earth Concentrate 3500 tons, 100 tons of rare earth polishing powder, rare earth ore-dressing senior collector 100 tons.

     But when the market environment under the influence of the more than 500 employees of state-owned enterprises had to swing around. With the enterprise miners an old saying that "single-handedly holding 'golden rice', the other hand is holding a 'beggar棍儿'." He lamented that nearly 40 years, dry years, and stopped three years is normal enterprises. Before the resumption of production in 2006, they have production up to 5 years. During this period, almost all of the lives of miners by the local government relief, only two or three hundred dollars per person per month for living expenses, some workers have the ability to leave one after another.

     In the first half of 2007 and 2008 is a rare earth Weishanhu days, when the grade 40, the ex-factory price of rare earth powder has reached more than 7000 yuan / ton. However, by the world financial crisis, the export of rare earth substantially reduced, by October 2008, the prices have suddenly dropped to 3600 yuan / ton or so, the more the production of more losses.

     Weishanhu Rare Earth Co., Ltd.-owned mine in a desolate scene. When the complex can only wait for the market to improve production and joint cooperation in progress.
    
     After two years of rapid development, Weishanhu production of rare earth again. "As early as the workers have a holiday, the only fat basic wage, leaving the management of all科级以上." A few days ago, journalists in this interview, a director said: "do not start losing money, more money-losing start." He calculations to account Herald reporter: even if the production per day is also pumping 3 times a month in electricity cost will be only 50,000 yuan, or downhole equipment will be flooded, to a greater loss of time.

Without a license can be meditation, such as market

"Beggar棍儿" Weishan县经贸局is obviously not willing to see. Rare Earth in 2007 from the market since warmer, it has been in gestation for the reorganization of Weishanhu RE. In various Gansu, Inner Mongolia and Jiangsu, to discuss a number of enterprises, it is located in Yixing, Jiangsu Province, with the final of the China Rare Earth Holdings Limited (hereinafter referred to as "China Rare Earth") reached a preliminary intention.

     In Hong Kong Stock Exchange-listed China Rare Earth (0769, HK) is a large-scale cross-regional enterprise, but also the country's largest rare earth and refractory manufacturers, one of his subordinates clear specialization 6 furniture have an independent legal entity wholly owned or holding subsidiaries. In accordance with the cooperation, China will work with rare earth Weishan县经贸局joint venture companies, the former 60% stake in absolute control.

     Subsequently, the micro-Hill县经贸局began a series of capital operation - one hundred million yuan capital injection will Weishan Mine Cui investment limited liability company (referred to as "micro-Hill Investment") from the micro-Shan Cui Mine Co., Ltd. in an independent out and then invest in Weishan bought Weishanhu RE. At this point, with China the early stage of the operation of rare-earth co-operation has been completed.

     Rare Earth in China promised to invest two billion yuan to carry out微山县deep processing of rare earth, the intention is clear: to take this into the upper reaches of the rare-earth mining.

     January 4, China Rare Earth and micro-Hill investment building sign a cooperation contract of Rare Earth Industry Park, through the extension of the processing industry chain, to build the country's major industrial base of rare earth. The project an investment of 1.5 billion, plans to invest 800 million yuan during the year 5, will be building a production line of rare earth carbonate, rare earth ore capacity expansion, production line of rare earth alloy, rare earth magnetic materials, such as production line items. "We now have no card to play, when the resumption of production can only wait for the market to improve cooperation and joint progress." The above-mentioned director, told reporters. (Xinhua, Wang Ying-wave micro-Hill reported)

Extended reading
Overview of rare earth
 
     Periodic table of chemical elements in the Lanthanide - Lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), Pm (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), as well as with lanthanide elements 15 are closely related to two elements -- Scandium (Sc) and yttrium (Y), a total of 17 kinds of elements, known as rare earth elements, referred to as Rare Earth.

     Rare Earth Industry vitamin can be widely used in electronic, petrochemical, metallurgy, machinery, energy, light industry, environmental protection, agriculture and other fields.

     REE content in the earth's crust abundance not scarcity, but the distribution is uneven, mainly concentrated in China, the United States, India, Russia, South Africa, Australia, Canada, Egypt and other countries. China is the world's largest reserves of rare earth resources, mainly have the Bayan Obo rare earth ore of rare earth ore, rare earth mine in Shandong Weishan, Mianning such as rare earth ore.
 
Editor: Guo Qiang