3.22.3.1 Availability and Demand

      China is endowed with abundant REE resources, so there are excellent conditions for the development of REE industry. The available REE products encompass bastnaesite, ion type REE ores and monazite. The productive capacity of REE concentrates is as high as 80,000 tons and the output is higher than 50,000 tons. The total smelting capacity of REE ores is over 100,000 tons a year (referring to REE oxides) and the output reaches 40,000~50,000 tons. At present, there are more than 70 hydrometallurgical plants and they produce 300 varieties and 500 specifications of REE products. The purity of a single REE oxide is 99%~99.9% in general and that of batch REE products can be as high as 99.9%~99.999%. The quality of products has come to the relevant national standards and can meet the demands of the customers both from China and abroad.

      Not only can the REE products meet the domestic demands, but also they are exported in large quantity to many foreign countries. The annual export of REE products is more than 30,000 tons in recent years. In consideration of the supply-exceeding-demand situation of REE products, the present relationship between production and supply should be regulated in China.

      In the world, the following countries are worth mentioning in terms of their REE production and consumption: China, the USA, France and Japan. In China, REE products have very wide applications involving more than 40 trades and industries of the national economy. In 1995, the total REE consumption was 40,000 tons (domestic, 33%; export and stock, 67%) with 13,000 tons of REE for domestic consumption, of which 34.2% was consumed in metallurgical and machinery industries, 10% in glass and ceramics, 24.6% in petroleum and chemical industries, 8.7% in new materials, and 22.5% in agriculture and light and textile industries.

3.22.3.2 Trends

      Based on the demands of the above-mentioned sectors for REE products, relevant departments and experts have made a prediction for the total demands of REE oxides in China. The Institute of Programming under the Beijing General Academy of Nonferrous Metallurgy made the following estimation. In 2000 the domestic demand will be 13,500 tons and export 16,500 tons (30,000 tons in total); and in 2005 the domestic demand will be 18,000 tons and the export 28,500 tons (53,500 tons in total). The average annual increase will be 5%, 5.5% and 6.4% respectively. The explored resources and current production capacity demonstrate that the future demand can be satisfied. As for the resources, the exploited and utilized ore districts yield 45% of the retained reserves. 35% of the retained reserves are ready to be tapped and only 20% of them are not suitable for exploitation in the near future. The reserves and mining-dressing ability of the current mines can meet the demands for the coming 30 years. As for the dressing and smelting ability, the present capacity is over 100,000 tons with a concentrate-processing capacity of more than 80,000 tons. So either the production capacity or the actual output is more than sufficient compared with the overall requirement to increase REE production. It should be noticed, however, that the technical content of the REE application in China is still low and that the quality and variety of products are relatively poor. Up to now the produced high-tech novelties are not highly competitive. Therefore, it is imperative to develop new technologies and strengthen the restructuring of products to make the products more competitive both in quality and quantity, as a result the superior resources can be transformed into superior industries to promote the sustainable development of China's REE industry. To this end, the following measures are to be adopted.

       1) It is imperative to carry out protective exploitation and utilization of the abundant REE resources and implement policies for sustainable development. The development of REE resources should be rationally planned and organized to raise the REE recovery ratio during the mining, dressing and smelting processes. We should put into effect conscientiously the Mineral Resources Law and related regulations issued by the State Council and department concerned. Ore mines should be administered and exploited according to law to stop whatever actions that are harmful to resources, such as wasteful mining and digging, so that the precious REE resources could be mined, utilized and protected rationally.

       2) REE industries cannot be vitalized unless a road of intensive development is taken. Only integrated joint-venture mechanism or joint groups combining mineral prospecting, mining-dressing-smelting-processing and even marketing and exporting of products can fulfill such tasks as macroscopic regulation, unified and overall planning and centralized management.

      3) It is imperative to expand the application scope of REE products to high- and new-technical fields to create new economic growth points of REE industries. Today the stress should be placed on the development of magnetic, superconductive, hydrogen-storing and fluorescence materials and tail-gas purifying agents to form or rapidly extend industries of high- and new-tech REE materials.