Chapter 483: The price of rare earths has risen

Qin Hai's identity became the last straw that crushed the suspicion of all mine owners, I have to say that this straw is made of gold after all, and it is very heavy.

The rest is pretty straightforward. No one will doubt Qin Hai's sincerity anymore, just kidding, a dignified giant boss, a person with an income of tens of thousands of yuan every minute, would come here to play with them without anything to do? The sum up of all the assets of this house is probably not as much as the assets of a company under the Daqin Group, do people need to cheat you people out of money?

Since he is not cheating money, then he can only believe Qin Hai's explanation, that is, he is here to give everyone a chance to make money. An industry wizard like Mr. Qin, can his investment vision be worse? Since Mr. Qin said that these factories can make money, then there will definitely be a lot of money in the future. Mr. Qin sent the mechanism under the tip of his nose, if everyone grabbed it quickly, it would be a fool of Tianzi No. 1, and he only deserved to go to the detention center to be accompanied by an unlucky person like Xin Jinlong.

Rare earth refinery, rare earth glaze factory, rare earth catalyst factory...... The letters of intent to invest in each factory are all vying for by the mine owners. The investment in each factory ranges from tens of millions to tens of millions, and Daqin Group controls 51% of the shares, regardless of whether it is large or small, and only distributes the other 49% to the miners in Johor Bahru.

The miners have no opinion on such an equity distribution plan. One is because no one can afford to undertake so much investment alone, and the other is because they feel that it is more prudent to let Daqin Group as a major shareholder. People understand technology, understand the market, and have the central leadership as a backer, isn't this naturally the characteristic of the controlling shareholder? There is nothing wrong with letting the Daqin Group eat meat and drink some soup by yourself. If the future described by Qin Hai is true, then this soup is also much more nutritious than the dried steamed buns that everyone used to gnaw.

These technologies for the deep processing of rare earths are all from Anhe Institute of Materials, which is also something that Qin Hai began to lay out more than a year ago. Simply selling rare earths has no future, and only deep processing can give full play to the advantages of rare earth power. China's proven reserves of rare earths account for about one-third of the world's total, and there is no monopoly position. But China's rare earths have two major characteristics. It is incomparable with foreign rare earths, one is that the production cost of light rare earth is extremely low, and the other is that the varieties of heavy rare earth are very complete.

What Qin Hai wanted from Ji and Ming Dynasty was the monopoly of rare earths, and in fact, he robbed the jobs of the three major foreign trade companies. Of course, the three major foreign trade companies will not worry about Qinhai because of this matter, because the export of rare earths is only a small part compared with the export of copper, tungsten ore, tin ore, etc. Moreover, it is very difficult to manage, and the three major foreign trade companies do not mind giving up this bit of leftover food to Qin Hai.

Qinhai, who obtained the exclusive right to operate, did not eat alone, but extensively absorbed the local government and small miners in the rare earth producing areas to participate in the development. The purpose of his doing this is, firstly, in line with the principle that the strong dragon does not suppress the head snake, to leave profit margins for others to ensure the safety of the rare earth industry. Otherwise, once the public is angry, all kinds of constraints in all aspects of the local area will be enough for his rare earth companies to deal with.

Second, he also hoped to give Ji Mingchu and the central leadership a sense of understanding the general situation and taking the overall situation into account. This will help him in the future. Most of the rare earth producing areas are poor mountainous areas, and rare earths are the greatest hope for local poverty alleviation. If he takes all the profits. Let the local area fall into poverty for a long time, and the country will definitely have ideas. Instead of waiting for the state to come forward and ask him for profits, it is better to make a gesture himself first, and he can also win a good reputation.

In addition to the plan to build the factory, Qin Hai also threw out a separate plan for the reclamation of the mine and tailings field. Barren mountains and tailings fields obviously cannot be used as farmland, and the main method of reclamation is to plant trees and grasses. At the same time of restoring the vegetation, certain economic benefits are obtained. Before coming to Yunjiang Province, Qin Hai had visited experts from the National Institute of Botany, and learned that trees such as Masson pine, neem, superba and Nanling sandalwood could be planted on the rare earth tailings, as well as herbaceous plants such as golden dogtail grass, horsetail grass and broad-leaved paspalum.

Wasteland reclamation is basically a matter of losing money. Unless you survive for a certain number of years, when the vegetation is fully restored, you will be able to make some of the benefits of the trees, and these benefits are insignificant compared to the initial investment. It stands to reason that it is difficult to find someone willing to join in this kind of thing, but Qin Hai still handed the plan to each mine owner.

What made him feel relieved was that the vast majority of mine owners said that they were willing to spend 35,000 yuan for reclamation, and more than 200 people got together and actually made up nearly 10 million yuan. Everyone said that they were willing to pay some money to make up for their past mistakes, but what most people wanted was to spend money to buy popularity, so that Qin Hai, Jia Xiaodong and others would have a good opinion of themselves. Of course, after this money, I can reasonably and confidently say that I have contributed to the environment of my hometown in various fields, and this money is not unjustly spent.

Under Qinhai's stick and carrot policy, the vigorous southern rare earth remediation campaign has achieved fruitful results. Thousands of small, unlicensed mining sites were basically shut down, and the licensed ones were brought under Qinhai's unified management and began to be rectified.

Qin Hai's big move was limited to the south, and did not touch the north. North 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 ores containing rare earth and iron a year, including 600,000 tons of rare earths. With such large production capacity and extremely low mining costs, the price of light rare earths in China is much lower than that of the United States, Turkey, Brazil and other places. Qin Hai left these light rare earth production capacity in order to suppress foreign rare earth companies, so that they could not resume production at all.

The impact of the remediation of rare earths in the south was quickly transmitted to the international rare earth market, compared with the slight rise in the price of light rare earths, the price of heavy rare earths can be called a rocket, quadrupled within a month, and from the perspective of supply and demand, the price will rise indefinitely in the future.

"The price of dysprosium oxide on the market has reached $50 per kilogram, compared to $5 a year ago. Even after China adopted the policy of limiting production and guaranteeing prices last year, it only rose to $12. But in the past month, the price has risen 3 times! ”

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

"What is the reason for this?" President Miyagawa asked calmly.

Nagatomo replied: "We have learned that southern China, which produces heavy rare earths, has recently been working on the management of rare earth mining. During the governance period, most of the mines were temporarily closed, and the supply of heavy rare earths to the civilian sector as well as exports has been interrupted, except for the supply of heavy rare earths to China's military sector. ”

"It's nothing." Miyagawa nodded, "China's rare earth mining is indeed very chaotic, and it is inevitable that the Chinese government will deal with it." However, they seem to have done this kind of governance several times, and each time they have given up halfway. We don't have to worry about the supply of heavy rare earths, if the market price is too high, let's use our own reserves first. ”

This psychology of Miyagawa is well-founded, and rare earths are a small player in the global mining market. 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. Due to the small supply and demand, the price of rare earths has always been extremely unstable, and any slight movement will cause its price to fluctuate significantly. Miyagawa is convinced that this rare earth price increase is just a gust of wind.

Japan is a big country for rare earth applications, and at the same time, it lacks rare earth resources and is completely dependent on imports. For this reason, Japanese companies have a long tradition of stockpiling rare earths, and the country's rare earth reserves are equivalent to two years' imports. Their usual practice is that when the price in the international market is low, they eat a lot to induce rare earth companies to expand their production capacity. When rare earth companies began to raise prices, they stopped importing and used inventories to cope with consumption, forcing rare earth companies to reduce prices and sell.

Such a set of tricks may be difficult to work against large rare earth companies in the United States, but it has been tried and tested again and again when applied to small rare earth companies in China. A large amount of experience shows that as long as Japanese companies pretend to be indifferent, hundreds of small Chinese rare earth exporters will price each other and rush to hug the thick legs of the Japanese.

Some people may wonder why there is such a situation of mutual price reduction when the Chinese government has restricted the export rights of rare earths to the three major foreign trade companies.

There are two reasons for this, one is that there are dozens of subsidiaries under the three major foreign trade companies, each of which has the right to export, and at the same time has its own foreign exchange earning task requirements, in order to complete the task, they do not hesitate to work hard under the framework of the same parent company.

Another reason is the impact of countless private mining sites, where rare earth products cannot be included in the sales scope of the three major foreign trade companies, and can only be exported through guò disguised smuggling. They can falsely call rare earths tungsten sand or copper ore and sell them abroad through legal channels. The local government is fully aware of this matter, but it is still deaf and dumb, and in the end, it is still driven by local interests.

It is precisely because he knows the state of rare earth production in China that Miyagawa 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 the price of rare earths will fall back to the level of Chinese cabbage. (To be continued......)