Interview: China rare earth comprehensive recycling industry reform is on the way
2016-11-30 14:59:34 [Print]
China rare earth comprehensiverecycling industry: reform is on the way
---Interview with XiongYongde, General Manager of Ganzhou Rare Earth Youli Science and TechnologyDevelopment Co., Ltd
GM.Xiong: Ganzhou Rare Earth YouliScience and Technology Development Co., Ltd. (“Youli Science and Technology”for short) is located in the National High-tech industrial Development Zone ofGanzhou city and the planning area of “China Rare Metals Valley”. Our companyowns a registered capital of 80 million Yuan, with a total investment of 280million Yuan in the project plan. The company ever named Ganzhou Youli MagnetsCo., Ltd, which has been engaged in the rare earth comprehensive recycling ofNdFeB magnet waste for more than 10 years. Currently, the Youli Science andTechnology has joined in the South Rare Earth Group, one of the six bigstate-owned enterprises in China, and it is a high-tech company which dealswith production and research work of NdFeB magnet waste and ion rare earthconcentrate.
Asian Metal: Thanks! Besides, can you introduceyourself basically?
GM.Xiong: I have managed processing with NdFeB magnet waste andproduction of rare earth metals for more than 10 years, thus I have a certainunderstanding about the NdFeB magnet waste market. In line with the concept of “People-oriented,integrity management”, and I have a good relationship with dozens of NdFeBmagnet companies.
.0001pt;line-height:10.35pt;background:#e0eaf6;">Asian Metal: Mr. Xiong, can you give me a graph aboutthe condition of supply and demand in rare earth the comprehensive recyclingindustry?
GM.Xiong: China faces with the problem of overcapacity, and I estimatethat the ratio between raw materials supply and the capacity is around 1:5.
Asian Metal: So, seen from the view of the NdFeBmagnet waste recycling industry, combining with the <Rare Earth IndustryDevelopment Regulation (2016-2020)>, what do you think about the Changes onthe rare earth recycling industry policies?
GM.Xiong: The government strengthens the regulation of the industry,aiming to meet the needs of the rare earth ore and separation management. Nowthe government combines management to control, and then eliminates backwardproduction capacity, reaching the goal of “Supply-side Reform” eventually.
Asian Metal: China MIIT held the “Rare EarthCoordination Meeting of Key Enterprises” on 9 Oct in Baotou, and the governmentclaimed to “Accelerate the construction of rare earth tracing system” and“Bring the rare earth recycling outputs into the production statistics”, whatdoes it mean for the industry and would those sentences make senses?
GM.Xiong: The rare earth tracing system will increase the government andenterprises’ management cost, just as the “Rare Earth Special VAT invoice”policy. While, “Bring the rare earth recycling outputs into the productionstatistics” will be good for the government to manage the rare earth industry macroscopiclyand formulate feasible policies.
.0001pt;line-height:10.35pt;background:#e0eaf6;">Asian Metal: There is a phenomenon that the NdFeBwaste is in tight supply, what’s the origin of this phenomenon? Have you everfaced with such problem and how you deal with it?
GM.Xiong: From my point of view, the origin of this phenomenon is theovercapacity. Of course, I have confronted with such problem, and the way tosolve this problem is to improve the enterprises’ competitiveness, managesincerely and try best to reduce the production cost. Otherwise, we keep good andstable business relationships with many companies.
Asian Metal: Owing to the low price level of therare earth products, the market price is closed or even lower than theproduction cost. However, the recycling plants rely on the governmentsubsidies, now the local governments try to cancel the subsidies, how therecycling plants to deal with it?
GM.Xiong: It is just a short-term activity for the government to subsidythe companies. As a company, we just reinforce the management and technicalinnovation, and then to improve enterprise competitive ability in the marketeconomy, following the law of the jungle and surviving of the fittest.
.0001pt;line-height:10.35pt;background:#e0eaf6;">Asian Metal: After the mid-November, the rareearth oxide prices moved up slightly, why did the price rises? What do youthink about the price trend in future market?
GM.Xiong: The reasons that account for the slight increasing prices are asfollows: the rare earth national storage news, more strict regulation onprivate ore and the environmental protection by the government, the naturalprice rules and the suppliers’ sales strategies and market psychology. Foreseeingthe future market, I am confident as the rare earth is a kind of un-renewableresource, the important strategic material, emerging industry and the indispensableelement of national defense science and technology. Actually, the rising priceshave no much effect on our production, because we are managing business, notdoing speculation.
Asian Metal: What’s the current condition and thedevelopment plan of your company, can you introduce to us briefly?
GM.Xiong: Our separation plant is on the stage of filling extraction tank,and we will have new products by the middle or late December. As theexperimental base for the National Ionic Rare Earth Engineering Research Center,Youli Science and Technology should be leading the way in the areas ofenvironmental protection and clean production technology. In the aspects ofmanagement and benefit, we are aiming to become the model company within theSouth Rare Earth Group.
Asian Metal: As you ever noted, your companyintends to explore the high purity rare earth oxide and the metal production,can you share your thoughts with us?
GM.Xiong: I believe that the directions for rare earth companies are thehigh purity rare earth oxides in the hydro-metallurgical process and the rareearth function materials in the downstream industry Chain. Youli Science andTechnology is going to keep up with research and development of rare earthfunctional materials, and will engaged in developing the high purity rare earthoxides and the application of new materials.
Asian Metal: Youli Science and Technology alwayspractices its core values of "People-oriented, high-quality and efficient,integrity and win-win" and insists on the mission of"To offer high quality products for customers, to create high quality lifefor employees", can Mr. Xiong share us your experience in the enterprisemanagement and administration?
GM.Xiong: Two proverbs: "God rewards those who work hard","Commercial world rewards those who are honest". That is to say, youshould be attendant on the management and be sincere to the customer. Employeesare the most valuable wealth of enterprise, so just treat workers well and tryyour best to reward contributory employees. As long as we adhere to the conceptof “People-centered, high-quality and efficient, integrity and win-win”,enterprises will continue to grow stronger.
