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China tightens management of rare earth elements, approves new regulations | World News

Posted on by darion

Rare earth elements belong to the country and no organization or person can claim rights to them, the State Council said in a statement posted on its website

Xi Jinping, Jinping, president of China
China’s new rare earths regulations will go into effect on Oct. 1. (File photo of Chinese President Xi Jinping)

Bloomberg Beijing

China has tightened governance of its rare earths industry, approving the first comprehensive regulation to regulate mining, smelting and trade in minerals.

Rare earth elements belong to the country and no organization or person can claim them, the Council of State said in a statement on its website. The state will take over responsibility for protective mining of this raw material, he added. The new rules come into force on October 1.

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Government agencies will have control over the total amount of rare earth metal mining and smelting and will also establish a product tracking system, it added. The regulation also sets out penalties for illegal activities related to mineral extraction.

China has long had a near monopoly on the supply of refined materials such as rare earths, lithium and graphite, which are essential for high-tech manufacturing and the transition to green energy. The country accounts for about 70 percent of global rare earth production. It has been consolidating its mining assets, forming China Rare Earth Group Co. in 2021 by combining several key producers.