In fact, not only rare earths, many of China's valuable strategic mineral resources have occurred or are happening in a similar situation, because of the lack of long-term international competition awareness, resulting in the loss of our international advantage pricing power, the loss of valuable non-renewable resources.

But people are like this, in the face of short-term interests and long-term interests of the choice, most people will choose short-term interests, including the person in charge of the enterprise and our government officials, they are more concerned about how much theory these valuable mineral resources export can bring to the enterprise, how much foreign exchange can be created for the government, how much GDP can be created, as for the loss of these non-renewable resources will be lost, China is vast, do you still care about such resources? By the time these resources are completely consumed, they are afraid that they will be long gone, and where can they manage such a distant matter.

It was not until 1998 that the state began to realize the importance of rare earth resources, began to implement the rare earth export quota license system, and included rare earth raw materials in the list of prohibited commodities for processing trade. In 2006, Huaxia implemented the total amount of rare earth mining control management. In 2008, the state promulgated the National Mineral Resources Plan, which implements planning and control, restricted mining, strict access and comprehensive utilization of specific minerals such as rare earths for protective mining. But even so,

However, the introduction of this series of policies still cannot stop the chaos of the domestic rare earth production industry. Relevant data show that the annual disguised export and smuggling of rare earths is about 20,000 ~ 30,000 tons. According to relevant statistics, the amount of rare earths imported from China according to foreign customs statistics is 1.2 times higher than that of China's customs statistics.

Hua Xinyu, as a veteran who has been in the rare earth industry for decades, is naturally clear about the inside story, and he deliberately gave Duan Yu such a big problem, just to block Duan Yu's mouth. Rare earth export quotas are difficult to obtain, even Duan Yu, the governor, is difficult to intervene, and if Duan Yu really has great powers to help Liaoyuan Rare Earth Group strive for more export quotas, it is a great thing, Liaoyuan Rare Earth Group can earn more foreign exchange, and he, the chairman, will naturally be more comfortable.

He didn't know that Duan Yu had done enough homework before he came, and even had a very bold idea in his heart, but it was not easy to implement this bold idea, Duan Yu had to understand the actual situation in more detail before making a decision, as soon as Hua Xinyu raised the quota, he knew that Hua Xinyu was fooling him as a layman, and said coldly: "Mr. Hua, may I ask what is the current export price of rare earths?... ...."

Hua Xinyu was stunned again, Duan Yu asked him to ask a question, he asked the question, but Duan Yu didn't answer, but asked about the export price of rare earths, and he couldn't understand Duan Yu's intentions more and more, and replied a little blankly: "It's about 27 US dollars a kilogram now, but this is not certain, the export price of rare earths fluctuates greatly, and it has been falling recently..."

Duan Yu actually knew this answer for a long time, and continued to ask expressionlessly: "Then for every kilogram of rare earth exported, how much profit can you Liaoyuan Rare Earth Group make after removing the cost of mining and refining, and how much profit margin ?... ... profit margin."

This question is asked to the key point, Hua Xinyu finally figured out Duan Yu's intentions, but he still has some doubts in his heart, after all, only insiders in the rare earth industry know the mystery of this, and people in the industry who really know the mystery of this will generally be like him, knowing that this is a short-sighted behavior of killing chickens and eggs, or hoping to strive for more export quotas, because if you don't export, people will export, if you lose the international market, the domestic market alone will not be able to support the enterprise. And government officials like Duan Yu are all laymen, they are more concerned about how much foreign exchange is created by exports and how much GDP is increased, and they rarely break the casserole like Duan Yu and ask the end.

But Hua Xinyu didn't dare to be sloppy with Duan Yu on this issue, because if Duan Yu really knew the mystery, then Duan Yu would have a target in asking this question, if he deceived Duan Yu, it would be serious, so he had to answer truthfully with a red face: "The refining cost of rare earth ore is very high, our group has reduced the cost as much as possible by strengthening management and improving refining technology, and now the profit of mining and refining costs for every kilogram of rare earth exported is about 0.3 US dollars, and the profit margin is only 1% A little more, this is mainly because our group has invested a lot in environmental protection...

Without waiting for Hua Xinyu to finish speaking, Duan Yu interrupted him with a wave of his hand, and snorted coldly: "The export of rare earth is only about 27 US dollars a kilogram, and now the price of pork in our market has reached more than 40 yuan a kilogram, which means that in fact, a kilogram of rare earth exports is not much more expensive than a kilogram of pork, and the profit margin is only 1% A little more, I believe that the preciousness of rare earth resources is better than me, I don't understand, why rare earths are such a precious and important strategic resource, non-renewable resources, but the export price is so low?!... ...?

Speaking of this, Duan Yu could no longer suppress the anger in his heart, slammed the beautifully printed report materials on the table, and said sternly: "Let me ask you again, with the current reserves of rare earths in Liaoyuan, and the export volume like the present, how many years can we still mine? When all the rare earth ores are mined, what can we leave to our children and grandchildren? As an old comrade and cadre who has been engaged in the rare earth industry for so many years, can't you see the problem in this?!... ...."

Hua Xinyu's cold sweat came down, he can now be sure that Duan Yu is indeed targeted, he has discovered that people in the rare earth industry know but are unwilling to face it, and he can't think of any good way to deal with it, only then did he clearly realize how difficult the young governor in front of him was, and said with a red face: " Governor Duan, I actually saw the problem you mentioned, but I really can't help it, at present, our group can only rely on exports, the share of the domestic market is very small, there are only some old customers, and the competition is also very fierce, the pricing power is not in our hands at all, we don't sell, our foreign customers can buy products with lower prices from other channels, and our group can't survive without relying on exports... ...