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Chapter 483 Rare earth prices have risen

Qin Hai's identity became the last straw that crushed the suspicion of all the mine owners. It must be said that this straw was made of gold after all, and it was very heavy.

The next thing becomes very simple. No one will doubt Qin Hai's sincerity. Just kidding, a dignified giant boss who earns tens of thousands of yuan every minute will come to Qin Hai without any trouble.

Are you here to play tricks on people like them? The combined assets of all the people in this room are probably not as much as the assets of a company under the Daqin Group. Do they need to defraud you of your money?

Since it is not a scam, we can only believe Qin Hai's explanation that he is here to provide everyone with opportunities to make money. How can an industry wizard like Mr. Qin have such a bad investment vision? Since Mr. Qin mentioned these factories

If you can make money, you will definitely have a lot of money in the future. Mr. Qin has put the agency under his nose. If everyone catches it quickly, he will be the number one fool in the world. He only deserves to go to the detention center and Xin Jinlong

I want to keep such an unlucky guy company.

Rare earth refining plants, rare earth glaze plants, rare earth catalyst plants... the letters of intent for shares in each factory are all being scrambled by mine owners. The investment in each factory ranges from tens of millions to hundreds of thousands, regardless of whether it is a large or small factory.

Factory, Daqin Group both control 51% of the shares, and only allocate the other 49% to the mine owners in Johor Bahru.

The mine owners have no objections to such an equity distribution plan. One reason is that no one has the ability to bear such a large investment alone, and the other reason is that it is safer to have Daqin Group as the major shareholder. They understand technology and the market.

And there is a central collar

Isn't this a natural characteristic of a controlling shareholder with the director as a backer? There is nothing wrong with letting Daqin Group eat the meat and drink some soup himself. If the future described by Qin Hai is true, then this soup is better than what everyone has experienced

The dried steamed buns you eat are much more nutritious.

These technologies for deep processing of rare earths all come from the Anhe Institute of Materials. This is something Qin Hai started to lay out more than a year ago. There is no future in simply selling rare earths. Only deep processing can give full play to the advantages of a rare earth power. China's rare earths

% of global proven reserves

The proportion is about 1/3, and there is no monopoly. However, China's rare earths have two major characteristics that are unmatched by foreign rare earths. First, the production cost of light rare earths is extremely low. Second, the variety of heavy rare earths is very complete. It has these two

, is enough for China to consider itself a rare earth power.

What Qin Hai wanted from Ji Mingchu was the monopoly right to operate rare earths. In fact, he stole the jobs of the three major foreign trade companies. Of course, the three major foreign trade companies would not argue with Qin Hai because of this matter, because the export of rare earths

Compared with the export of copper ore, tungsten ore, tin ore, etc., it is only a small part. Moreover, management is very difficult, and the three major foreign trade companies do not mind giving up this leftover to Qin Hai.

Qin Hai, who obtained the exclusive operating rights, did not go it alone. Instead, he extensively recruited local governments and small mine owners in rare earth producing areas to participate in the development. The purpose of his doing so was, first, to adhere to the principle that the strong dragon should not overwhelm the local snake.

Others have set aside profit margins to ensure the safety of the rare earth industry. Otherwise, once there is public outrage, various local constraints will be enough for these rare earth companies to be overwhelmed.

Secondly, he also hopes to give Ji Mingchu and the central leadership a sense of understanding the general situation and taking into account the overall situation. This will be helpful to his future development. Most rare earth producing areas are poor mountainous areas, and rare earths are the biggest hope for local poverty alleviation.

If he takes away all the profits and keeps the local area trapped in poverty for a long time, the country will definitely have ideas. Instead of waiting for the country to come forward and ask for profits from him, it is better to make a gesture first and gain a good reputation.

.

In addition to the plan to build the factory, Qin Hai also proposed a reclamation plan for mines and tailings fields. Barren hills and tailings fields obviously cannot be used as farmland, and the method of reclamation is mainly to plant trees and grass.

While restoring vegetation, certain economic benefits will be achieved. In the future

Before Yunjiang Province, Qin Hai visited experts from the National Institute of Botany and learned that trees including masson pine, neem, woodland, Nanling Dalbergia, etc. could be planted on the rare earth tailings, as well as golden setaria and crabgrass.

, broad-leaved paspalum and other herbaceous plants.

Reclamation of wasteland is basically a money-losing thing. Unless you wait for a certain period of time and wait until the vegetation is completely restored, you can get some benefits from the forest trees, and these benefits are negligible compared with the initial investment. Logically speaking, this kind of thing

It was difficult to find anyone willing to join, but Qin Hai still handed the plan to every mine owner.

What pleased him was that the vast majority of the mine owners expressed their willingness to spend 35,000 yuan for reclamation. More than 200 people came together and actually came up with an amount of nearly 10 million yuan. Everyone said so.

What it means is that you are willing to pay some money to make up for your past mistakes, but more

What most people want to do is spend money to buy popularity so that Qin Hai, Jia Xiaodong and others will have a good opinion of themselves. Of course, after spending this money, they can confidently say that they have done something good for the environment in their hometown on various occasions.

Contribution, this money is not wasted.

Under Qin Hai's stick and carrot policy, the vigorous rare earth regulation campaign in the south has achieved fruitful results. Thousands of unlicensed small mining sites have been basically closed down, and licensed mining sites have also been included in Qin Hai's policy.

Under the unified management, rectification began.

Qin Hai's big moves are limited to the south and do not touch the north. Northern 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 ores a year, including

of rare earths reaches 600,000 tons

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. The purpose of Qin Hai leaving these light rare earth production capacities is to suppress foreign rare earth companies and let

They simply cannot resume production.

The impact of the rare earth regulation in the south was quickly transmitted to the international rare earth market. Compared with the slight increase in the price of light rare earths, the price of heavy rare earths can be said to be on a rocket, quadrupling within a month, and judging from the supply and demand situation

Look, prices will continue to rise indefinitely in the future.

"The price of dysprosium oxide on the market has reached US$50 per kilogram, while a year ago, the price was only US$5. Even after China adopted a production limit and price guarantee policy last year, it only rose to US$12. But this past year

In just one month, the price has tripled!"

In the conference room of Haruyama Magnetic Materials Co., Ltd. in Japan, Nagatomo Nagatomo, the minister in charge of raw material procurement, reported market trends to the company's middle and senior managers with a dark face.

"What's the reason?" President Miyagawa asked calmly.

Nagatomo Nagaji replied: "We have learned that southern China, which produces heavy rare earths, is currently undergoing governance work on rare earth mining. During the governance period, most of the mines have been temporarily closed, except for heavy rare earths that supply the secondary industry sector.

In addition, the supply of heavy rare earths to the civilian sector and exports has been disrupted."

"It's nothing." Miyagawa nodded, "China's rare earth mining is indeed very chaotic, and it is inevitable for the Chinese government to carry out governance. However, they seem to have carried out similar governance several times, and every time it is

Give up halfway. We don’t have to worry about the supply of heavy rare earths. If the market price is too high, we can use our own reserves first."

Miyagawa Masa's psychology is well-founded. In the global mining market, rare earths are a small player. Compared with the annual trading volume of hundreds of millions of tons of iron ore, the production and sales of rare earths are only a few tens of thousands of tons. Because

The quantity of supply and demand is small, so the price of rare earths has always been extremely unstable, and any slight fluctuation will cause the price to fluctuate greatly. Miyagawa is convinced that this time the price increase of rare earths is just a gust of wind.

Japan is a big country in the application of rare earths, but it also lacks rare earth resources and is completely dependent on imports. For this reason, Japanese companies have a tradition of stockpiling rare earths. The national rare earth reserves are equivalent to two years of imports. Their usual practice is

, when international market prices are low, they buy large amounts to induce rare earth companies to expand production capacity. When rare earth companies start to increase prices, they stop importing and use inventory to meet consumption, forcing rare earth companies to cut prices and sell.

Such a set of tricks may not be effective against large rare earth companies in the United States, but it has been tried and true when used on small rare earth companies in China. A large amount of experience shows that as long as Japanese companies pretend to be indifferent, the number of

Hundreds of small Chinese rare earth exporters will lower each other's prices and compete for the Japanese's thick legs.

Some people may find it strange that since the Chinese government has restricted the export rights of rare earths to the three major foreign trade companies, why does this situation of mutual price reduction still occur?

There are two reasons for this. First, there are dozens of subsidiaries under the three major foreign trade companies. Each subsidiary has export rights and also has its own requirements for earning foreign exchange. In order to complete the task, they do not hesitate to work under the same parent company.

Shopping is carried out within the framework of the company.

Another reason is the impact of countless private mining sites. The rare earth products of 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. They can falsely call rare earths tungsten sand

Or copper ore is sold abroad through legal channels. The local government is fully aware of this matter, but pretends to be deaf and dumb. In the final analysis, it is still driven by local interests.

It is precisely because he knows China's rare earth production situation well that Miyagawa Masaru is so confident, believing that as long as the company's inventory is used for a few months, China's rare earth production restriction policy will collapse, and rare earth prices will fall back to

The average level of Chinese cabbage. (To be continued...)

...


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