Foreign Media: After China Requires Enterprises to Establish Product Traceability System, Share Prices of Multiple Rare

Lianhe Zaobao, August 25 — After China issued the "Interim Measures for the Management of Total Control over Rare Earth Mining and Rare Earth Smelting Separation," requiring rare earth producers to establish a product traceability system, the share prices of multiple Chinese rare earth companies surged on Monday (August 25).

China Northern Rare Earth, listed in Shanghai, closed nearly 10% higher. Zhejiang Zhongke Magnetic Industry, listed on the Growth Enterprise Market, saw its shares surge 12% during trading and closed 6.49% higher.

China Rare Earth Group Resources Technology, listed on the Shenzhen Stock Exchange Main Board, rose 8.5% during trading and closed 6.19% higher. JL MAG Rare-Earth, listed in Hong Kong, saw its shares soar 18% during trading and was up 14.85% as of 3:30 p.m.

China’s Ministry of Industry and Information Technology (MIIT) published the interim measures on its official website last Friday (August 22). The regulations stipulate that the state will implement total control management over rare earth mining (including rare earth mineral products, etc.) and the smelting separation of various rare earth mineral products (including monazite concentrate) obtained through mining, imports, and processing of other minerals.

The MIIT, in conjunction with the Ministry of Natural Resources and the National Development and Reform Commission, will study and propose annual total control indicators for rare earth mining and smelting separation based on factors such as national economic development goals, the reserves and types of national rare earth resources, the development of the rare earth industry, ecological protection, and market demand. These indicators will be submitted to the State Council for approval.

Rare earth producers are required to establish a rare earth product traceability system, accurately record the flow of rare earth products, and input the flow information of rare earth products from the previous month into the rare earth product traceability information system established by the MIIT and relevant departments by the 10th of each month.