[Learning the Rule of Law]"Regulations on the Management of Rare Earths" announced
Order of the State Council of the People's Republic of China
no. 785
The "Regulations on the Management of Rare Earths" were adopted at the 31st executive meeting of the State Council on April 26, 2024 and are hereby promulgated and will come into effect on October 1, 2024.
Premier Li Qiang
June 22, 2024
Rare Earth Management Regulations
Article 1 In order to effectively protect and rationally develop and utilize rare earth resources, promote high-quality development of the rare earth industry, maintain ecological security, and ensure national resource security and industrial security, these Regulations are formulated in accordance with relevant laws.
Article 2 These Regulations shall apply to activities such as rare earth mining, smelting and separation, metal smelting, comprehensive utilization, product circulation, import and export within the territory of the People's Republic of China.
Article 3 Rare earth management should implement the party and the country's lines, principles, policies, decisions and arrangements, adhere to equal emphasis on resource protection and development and utilization, and follow the principles of overall planning, ensuring safety, scientific and technological innovation, and green development.
Article 4 Rare earth resources belong to the state, and no organization or individual may encroach on or destroy rare earth resources.
The state strengthens the protection of rare earth resources in accordance with the law and implements protective mining of rare earth resources.
Article 5 The state implements a unified plan for the development of the rare earth industry. The competent department of industry and information technology of the State Council, together with relevant departments of the State Council, shall prepare and organize the implementation of the rare earth industry development plan in accordance with the law.
Article 6 The state encourages and supports the research and development and application of new technologies, new processes, new products, new materials, and new equipment in the rare earth industry, continues to improve the level of development and utilization of rare earth resources, and promotes the high-end, intelligent and green development of the rare earth industry.
Article 7 The competent department of industry and information technology of the State Council is responsible for the management of the rare earth industry across the country, and studies, formulates and organizes the implementation of rare earth industry management policies and measures. The natural resources department of the State Council and other relevant departments are responsible for rare earth management within their respective scope of responsibilities.
Local people's governments at or above the county level are responsible for the management of rare earths in their respective regions. Relevant competent departments of industry, informatization, natural resources and other relevant departments of local people's governments at or above the county level shall do a good job in rare earth management in accordance with the division of responsibilities.
Article 8 The competent department of industry and information technology under the State Council shall, in conjunction with relevant departments of the State Council, determine rare earth mining enterprises and rare earth smelting and separation enterprises and announce them to the public.
Except for the enterprises determined in accordance with paragraph 1 of this article, other organizations and individuals are not allowed to engage in rare earth mining and rare earth smelting and separation.
Article 9 Rare earth mining enterprises shall obtain mining rights and mining licenses in accordance with mineral resource management laws, administrative regulations and relevant national regulations.
Investing in rare earth mining, smelting and separation and other projects must comply with the laws, administrative regulations and relevant national regulations on investment project management.
Article 10 The state implements total control over rare earth mining and rare earth smelting and separation based on factors such as differences in reserve and types of rare earth resources, industrial development, ecological protection, and market demand, and optimizes dynamic management. Specific measures shall be formulated by the competent department of industry and information technology of the State Council in conjunction with the natural resources, development and reform departments of the State Council.
Rare earth mining enterprises and rare earth smelting and separation enterprises shall strictly abide by relevant national regulations on total amount control and management.
Article 11 The state encourages and supports enterprises to use advanced and applicable technologies and processes to comprehensively utilize rare earth secondary resources.
Enterprises making comprehensive utilization of rare earth are not allowed to use rare earth mineral products as raw materials to engage in production activities.
Article 12 Enterprises engaged in rare earth mining, smelting and separation, metal smelting, and comprehensive utilization shall abide by laws and regulations on mineral resources, energy conservation and environmental protection, clean production, safety production and fire protection, and adopt reasonable environmental risk prevention, ecological protection, and pollution Prevention and safety protection measures to effectively prevent environmental pollution and production safety accidents.
Article 13 No organization or individual may purchase, process, sell or export illegally mined or illegally smelted and separated rare earth products.
Article 14 The competent department of industry and information technology of the State Council, together with the natural resources, commerce, customs, taxation and other departments of the State Council, shall establish a traceability information system for rare earth products, strengthen the traceability management of the entire process of rare earth products, and promote data sharing among relevant departments.
Enterprises engaged in rare earth mining, smelting and separation, metal smelting, comprehensive utilization and export of rare earth products shall establish a recording system for the flow of rare earth products, truthfully record the flow information of rare earth products and enter it into the rare earth product traceability information system.
Article 15 The import and export of rare earth products and related technologies, processes and equipment shall comply with the provisions of relevant foreign trade, import and export management laws and administrative regulations. If items fall under export control, they shall also abide by the provisions of export control laws and administrative regulations.
Article 16 The state shall improve the rare earth reserve system in accordance with the combination of physical reserves and mineral reserves.
The physical reserve of rare earth is combined with government reserves and corporate reserves, and the structure and quantity of reserve varieties are continuously optimized. Specific measures shall be formulated by the development and reform and finance departments of the State Council in conjunction with the competent departments of industry and information technology, and the grain and material reserve departments.
The natural resources department of the State Council, together with relevant departments of the State Council, will designate rare earth resource reserve areas in accordance with the needs to ensure the safety of rare earth resources and combine factors such as resource reserves, distribution, and importance, and strengthen supervision and protection in accordance with the law. Specific measures shall be formulated by the natural resources department of the State Council in conjunction with relevant departments of the State Council.
Article 17 Rare earth industry organizations shall establish and improve industry norms, strengthen industry self-discipline management, guide enterprises to abide by the law, operate with integrity, and promote fair competition.
Article 18 The competent departments of industry and information technology and other relevant departments (hereinafter collectively referred to as the supervision and inspection departments) shall, in accordance with relevant laws, regulations and the provisions of these Regulations, supervise and inspect rare earth mining, smelting and separation, metal smelting, comprehensive utilization, and product circulation in accordance with the division of responsibilities., import and export and other activities, and deal with illegal activities in a timely manner in accordance with the law.
The supervision and inspection department conducts supervision and inspection and has the right to take the following measures:
(1) Require the inspected unit to provide relevant documents and materials;
(2) Asking the inspected unit and its relevant personnel and asking them to explain the situation related to supervision and inspection matters;
(3) Entering a place suspected of illegal activities for investigation and evidence collection;
(4) Seizure rare earth products, tools and equipment related to illegal activities, and seal up places for illegal activities;
(5) Other measures stipulated by laws and administrative regulations.
The inspected unit and its relevant personnel shall cooperate and truthfully provide relevant documents and materials, and shall not refuse or hinder them.
Article 19 The supervision and inspection department shall conduct supervision and inspection with no less than 2 supervision and inspection personnel and shall present valid administrative law enforcement certificates.
Staff members of the supervision and inspection department have the obligation to keep confidential state secrets, trade secrets and personal information learned during supervision and inspection.
Article 20 Anyone who violates the provisions of these Regulations and commits one of the following acts shall be punished by the competent natural resources department in accordance with the law:
(1) Rare earth mining enterprises mine rare earth resources without obtaining mining rights or mining licenses, or mine rare earth resources in mining areas beyond the registration of mining rights;
(2) Organizations and individuals other than rare earth mining enterprises engage in rare earth mining.
Article 21 If a rare earth mining enterprise or rare earth smelting and separation enterprise violates the regulations on total amount control and management to mine, smelt and separate rare earth, the competent department of natural resources, industry and information technology shall order it to make corrections in accordance with the division of responsibilities, and confiscate the illegally produced rare earth products and illegal income, and impose a fine of not less than 5 times but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 500,000 yuan, a fine of not less than 1 million yuan but not more than 5 million yuan shall be imposed; If the circumstances are serious, the suspension of production and business shall be ordered, and the main person in charge, the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the law.
Article 22 Anyone who violates the provisions of these Regulations and commits one of the following acts shall be ordered by the competent department of industry and information technology to stop the illegal act, confiscate the illegally produced rare earth products and illegal income, as well as tools and equipment directly used for illegal activities, and concurrently impose a fine of 5 times but not more than 10 times the illegal income; if there is no illegal income or the illegal income is less than 500,000 yuan, a fine of 2 million yuan but not more than 5 million yuan shall be imposed; If the circumstances are serious, the market supervision and management department shall revoke its business license:
(1) Organizations and individuals other than rare earth smelting and separation enterprises engage in smelting and separation;
(2) Rare earth comprehensive utilization enterprises use rare earth mineral products as raw materials to engage in production activities.
Article 23 Anyone who violates the provisions of these Regulations by purchasing, processing, or selling illegally mined or illegally smelted and separated rare earth products shall, the competent department of industry and information technology, together with relevant departments, order it to stop the illegal act and confiscate the illegally purchased, processed, or sold rare earth products and illegal income and tools and equipment directly used for illegal activities, and impose a fine of not less than 5 times but not more than 10 times the illegal income; If there is no illegal income or the illegal income is less than 500,000 yuan, a fine of 500,000 yuan but not more than 2 million yuan shall be imposed concurrently; if the circumstances are serious, the market supervision and management department shall revoke its business license.
Article 24 If the import and export of rare earth products and related technologies, processes, and equipment violates relevant laws, administrative regulations and the provisions of these Regulations, the competent commercial department, customs and other relevant departments shall impose penalties in accordance with their duties and laws.
Article 25 If an enterprise engaged in rare earth mining, smelting and separation, metal smelting, comprehensive utilization and export of rare earth products fails to truthfully record the flow information of rare earth products and enter it into the rare earth product traceability information system, the competent department of industry and information technology and other relevant departments shall be ordered to make corrections in accordance with the division of responsibilities, and the enterprise shall be fined between 50,000 yuan and 200,000 yuan; Those who refuse to make corrections shall be ordered to suspend production and business operations, and the main person in charge, directly responsible persons in charge and other directly responsible persons shall be fined between 20,000 yuan and not more than 50,000 yuan, and the enterprise shall be fined between 200,000 yuan and not more than 1 million yuan.
Article 26 If the supervision and inspection department refuses or obstructs the supervision and inspection department from performing its supervision and inspection duties in accordance with the law, the supervision and inspection department shall order it to make corrections, give a warning to the main person in charge, the directly responsible person and other directly responsible persons, and impose a fine of not less than 20,000 yuan but not more than 100,000 yuan on the enterprise; Those who refuse to make corrections shall be ordered to suspend production and business operations, and the main person in charge, directly responsible persons in charge and other directly responsible persons shall be fined between 20,000 yuan and not more than 50,000 yuan, and the enterprise shall be fined between 100,000 yuan and not more than 500,000 yuan.
Article 27 If enterprises engaged in rare earth mining, smelting and separation, metal smelting, and comprehensive utilization violate relevant laws and regulations on energy conservation and environmental protection, clean production, safe production and fire protection, relevant departments shall impose penalties in accordance with their duties and laws.
Illegal activities of enterprises engaged in rare earth mining, smelting and separation, metal smelting, comprehensive utilization and import and export of rare earth products shall be recorded in credit records by relevant departments in accordance with the law and incorporated into relevant national credit information systems.
Article 28 If a staff member of the supervision and inspection department abuses his power, neglects his duties, or engages in personal gain in rare earth management, he shall be punished in accordance with the law.
Article 29 Anyone who violates the provisions of these Regulations and constitutes a violation of public security management shall be given public security management penalties in accordance with the law; if it constitutes a crime, criminal responsibility shall be investigated in accordance with the law.
Article 30 The meanings of the following terms in these Regulations:
Rare earth refers to the general term for lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, yttrium and other elements.
Smelting and separation refers to the production process of processing rare earth mineral products into various single or mixed rare earth oxides, salts and other compounds.
Metal smelting refers to the production process of making rare earth metals or alloys from single or mixed rare earth oxides, salts and other compounds as raw materials.
Rare earth secondary resources refer to solid waste that can be processed to restore the rare earth elements contained in it to their useful value, including but not limited to rare earth permanent magnet waste, waste permanent magnets and other rare earth-containing wastes.
Rare earth products include rare earth mineral products, various rare earth compounds, various rare earth metals and alloys, etc.
Article 31 Regarding the management of rare metals other than rare earths, the relevant competent departments of the State Council may refer to the relevant provisions of these Regulations.
Article 32 These Regulations shall come into effect on October 1, 2024.
