Vol 2 Chapter 483: Rare earth prices have risen

Qin Hai's identity has become the last straw that crushes the skepticism of all mine owners. I have to say that this straw is made of gold after all, and the weight is very heavy. \\ Top \\ Point \\. () (). O \\
The next thing becomes very simple. No one will doubt Qin Hai's sincerity anymore, jokingly, a huge boss who has tens of thousands of dollars in income every minute will come here for nothing and play with them. The property owned by the people in this house is not as good as the assets of a company under the Daqin Group. Do people need to lie to you?
Since it is not cheating money, we can only trust Qin Hai's explanation that he is here to give everyone a chance to make money. Can an investment genius like President Qin be too poor? Since Mr. Qin said that these factories can make money, there will definitely be a lot of money in the future. President Qin sent the organ to the tip of his nose. If everyone hurriedly caught it, it would be the fool of Tianzi No. 1, only to go to the detention center with a bad guy like Xin Jinlong.
Rare earth refining plants, rare earth glaze plants, rare earth catalyst plants, etc. Each plant's letter of intent to buy shares has been scrambled by the mine owners. The investment of each plant is tens of millions, at least one million. Regardless of the large factories and small factories, the Daqin Group controls 51% of the equity and only allocates another 49% to the miners in Johor Bahru.
The miners have no opinion on such a shareholding distribution plan. One is that no one has the ability to shoulder so much investment alone, and the other is that it makes Daqin Group a more secure shareholder. People understand technology, understand the market, and have the central leadership as the backing. Isn't that naturally a characteristic of controlling shareholders? It is not bad for the Daqin Group to eat meat and drink some soup by itself. If the future described by Qin Hai is real, then this soup will be more nutritious than the dried steamed buns that everyone ate in the past.
These technologies for deep processing of rare earths all come from Anhe Institute of Materials, which is also something that Qin Hai started to deploy more than a year ago. There is no future in selling rare earths alone. Only by deep processing can the advantages of rare earth powers be brought into play. China's proven rare earth reserves account for about one-third of the world's total, and it has no monopoly status. But China's rare earth has two major characteristics. It is unmatched by foreign rare earths. One is that the production cost of light rare earth is extremely low, and the other is that the varieties of heavy rare earth are very complete. Having these two is enough for China to be a rare earth power country.
What Qin Hai wanted from the early period of Jiming and Ming Dynasty was the monopoly right of rare earth, in fact, it was the job of the three major foreign trade companies. Of course, the three major foreign trade companies will not compare with Qin Hai because of this matter, because the export of rare earth is only a small part compared with the export of copper, tungsten, tin, etc. And the management is very difficult, the three major foreign trade companies do not mind giving this leftover to Qin Hai.
Qin Hai, who won the exclusive right to operate, did not eat alone, but extensively absorbed local governments and small mine owners in the rare-earth producing areas to participate in the development. The purpose of his doing so was to keep the profit margins for others in the spirit of the strong dragons not suppressing the snake, so as to ensure the safety of the rare earth industry. Otherwise, once public anger is committed, various local constraints will be enough for his rare earth companies to cope with it.
In the second aspect, he also hopes to give a sense of understanding and taking care of the overall situation in the early Ming Dynasty and in the central government. This is helpful for his future development. Rare earth producing areas are mostly poor mountainous areas, and rare earth is the greatest hope for local poverty alleviation. If he took away all his profits. The country will certainly have an idea if it is to suffer local poverty for a long time. Rather than wait for the country to come forward to ask him for profits, it is better to make a gesture first and gain a good reputation.
In addition to the plan for building the plant, Qin Hai also threw out a plan for reclamation of mines and tailings sites. The barren hills and tailings fields are obviously not suitable for farmland. The main methods of reclamation are planting trees and grass. While recovering vegetation, certain economic benefits have been achieved. Before coming to Yunjiang Province, Qin Hai visited experts from the National Institute of Botany and learned that rare earth tailings can be planted with trees such as Pinus massoniana, Castanopsis sclerophylla, Schima superba, Nanling Dalbergia, and golden dogtail, Herbs such as crabgrass, broadleaf paspalum.
Wasteland reclamation is basically a loss of money. Unless it has been for a certain number of years, and after the vegetation is completely restored, some forest benefits can be obtained, and these benefits are insignificant compared with the initial investment. It stands to reason that this kind of thing is difficult to find someone willing to join, but Qin Hai still handed the plan to the hands of each mine owner.
What made him feel relieved was that the vast majority of mine owners stated that they were willing to put up 35,000 funds for reclamation. More than 200 people gathered together, and actually collected nearly 10 million yuan. Everyone says that they are willing to pay some money to make up for their past mistakes, but most people think about spending money to buy personal relationships, so that Qin Hai and Jia Xiaodong and others have a good opinion of themselves. Of course, after paying this money, he can reasonably and arrogantly say that he has contributed to the environment of his hometown in various fields.
Under Qin Hai's stick-and-carrot policy, the vigorous Southern Rare Earth Rectification Campaign has achieved fruitful results. Thousands of small unlicensed mining sites were basically closed down, and certified mining sites were also brought under Qin Hai's unified management, and rectification began.
Qin Hai's big move was limited to the south, but did not touch the north. North China is a light rare earth producing area, mainly producing lanthanum, cerium and other products. Among them, the Baiyun mining area can mine 15 million tons of rare earth and iron-containing ore a year, including 600,000 tons of rare earth. Such large production capacity and extremely low mining costs make China's light rare earth prices much lower than those in the United States, Turkey, Brazil and other places. Qin Hai left these light rare earth production capacity in order to suppress foreign rare earth companies and make them unable to resume production at all.
The impact of the South Rare Earth Rectification quickly passed to the international rare earth market. Compared with the slight increase in the price of light rare earth, the price of heavy rare earth can be said to have been on a rocket. It has quadrupled within a month. Look, the future price will go up indefinitely.
"The quotation of thorium oxide in the market has reached 50 US dollars per kilogram, and a year ago, the price was only 5 US dollars. Even after China adopted the policy of limiting production and guaranteeing prices last year, it only rose to 12 US dollars. But this just passed In just one month, the price has tripled! "
In the meeting room of Japan's Chunshan Magnetic Materials Co., Ltd., the head of the procurement department, Mr. You Yongzheng, reported the market trends to the company's middle and senior management staff with a dark face.
"What is the reason?" President Miyagawa asked calmly.
Changyou Yongzheng replied: "We have learned that the southern China producing heavy rare earth is currently undergoing the treatment of rare earth mining. During the treatment period, most of the mines were temporarily closed, except for the supply of heavy rare earth from the China National Engineering Department. In addition, the civilian sector and the export of heavy rare earth have been interrupted. "
"It's nothing." Miyagawa nodded. "China's mining of rare earths is indeed very chaotic, and the Chinese government's governance is inevitable. However, it seems that they have already conducted such governance several times. It's half-way. We don't have to worry about the supply of heavy rare earths. If the market price is too high, use our own reserves first. "
Miyagawa's mentality is well-founded. In the global mining market, rare earths play a small role. Compared with the trading volume of hundreds of millions of tons of iron ore a year, the production and sales of rare earths are only tens of thousands of tons. Due to the small number of supply and demand, the price of rare earth has always been extremely unstable, and any turbulence will cause its prices to fluctuate significantly. Miyagawa is convinced that the rare earth price increase this time is just a gust of wind.
Japan is a big country in rare earth applications, but also lacks rare earth resources, and is totally dependent on imports. To this end, Japanese companies have a tradition of storing rare earths, and the country's rare earth reserves are equivalent to two years of imports. Their usual practice is that when the international market prices are low, they eat a lot, in order to induce rare earth companies to expand production capacity. When the rare earth companies started to increase their prices, they stopped importing and used inventory to meet consumption, forcing the rare earth companies to cut prices and sell.
Such a trick may not be effective against the large rare earth company in the United States ~ EbookFREE.me ~, but it has been tried and tested for small rare earth companies in China. A great deal of experience shows that as long as Japanese companies pretend to be indifferent, hundreds of small Chinese rare earth exporters will bargain each other's prices and hug the Japanese's thick legs.
Some people may find it strange that since the Chinese government has restricted the export right of rare earths to the three major foreign trade companies, why is there such a situation of mutual price reduction?
There are two reasons for this. One is that there are dozens of subsidiaries under the three major foreign trade companies, each of which has export rights and also has its own requirements for earning foreign exchange. In order to complete the task, they are at the same parent. Under the framework of the company to fight hard.
Another reason is the impact of numerous private mining sites. The rare earth products at these private mining sites cannot be included in the sales scope of the three major foreign trade companies and can only be exported through disguised smuggling methods. They can fake the rare earth as tungsten sand or copper ore and sell it abroad through legal channels. The local government was fully aware of the matter, but pretended to be deaf and dumb, after all, it was still driven by local interests.
Because of his knowledge of China's rare earth production, Miyagawa is so confident that he believes that as long as the company's inventory is slightly topped for a few months, China's rare earth production limit policy will collapse and the rare earth prices will fall back to Chinese cabbage level. (To be continued ...)