China Formally Carries out Integration of Fluorite Resources

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Publish time: 25th July, 2012      Source: CCM
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      China formally starts to integrate fluorite resources, which will benefit the export control of fluorite, improve the efficiency of fluorite utilization and promote the development of high value-added fluorine chemicals. However, it will encounter resistance from the enterprises to be eliminated and the local governments, according to CCM’s July Issue of China Fluoride Materials Monthly Report.

    

       

    

      On June 25, 2012, the Ministry of Industry and Information Technology of the People's Republic of China promulgated the List of the First Batch of Fluorite Production Lines Which Meet the Standard for Fluorite Industry Admittance. According to this list, ten companies' fluorite production lines have been approved to meet the Standard for Fluorite Industry Admittance. It means that China formally carries out integration work of fluorite resources and it will gradually promulgate more lists, while more and more fluorite producers which do not meet the Standard for Fluorite Industry Admittance will be eliminated or integrated in the future.

    

       

    

      The integration of fluorite resource will benefit the export control of fluorite, the efficiency of fluorite utilization and the development of high value-added downstream fluorine chemical products.

    

       

    

      As the main raw material in fluorine chemical industry, fluorite is an important strategic resource. But in the 1990s, the fluorite resource did not arouse adequate attention from the Chinese government and the export volume of fluorite was over 1 million tonnes per year. Moreover, affected by the illegal exploitation, the price of fluorite is extremely low and the environment is polluted and damaged greatly. Such cases about illegal exploitation have been constantly revealed.

    

       

    

      Although the Chinese government has adopted a series of measures, such as decreasing export quota, increasing export tariff and  setting up exploitation quota, to protect the fluorite resources since 1999, there were still huge amounts of fluorite exported oversea. From 1999 to 2011, China totally exported about 10.5 million tonnes of fluorite. At the same time, China totally exported about 1.1 million tonnes of HF, equivalent to 4.4 million tonnes of fluorite, since one tonne of HF consumes four tonnes of fluorite. It means that China totally exported about 14.9 million tonnes of fluorite directly and indirectly from 1999 to 2011, averagely 1.15 million tonnes per year.

    

       

    

      Simultaneously, Chinese fluorite producers are mostly minor enterprises which lag in technologies, production equipment and production management currently. In addition, since there are numerous  minor enterprises, it is not easy for the Chinese government to supervise the exploitation of fluorite, which leads to the emergence of illegal exploitation from time to time.

    

       

    

      Nowadays, through the integraton of fluorite resources, China will eliminate the backward production lines of fluorite and the fluorite resources will be integrated to some preponderant enterprises, which is propitious to control the fluorite export and to improve the utilization efficiency of fluorite.

    

       

    

      Apart from this, the integration of the fluorite resources will benefit the preponderant enterprises to develop high value-added fluorine chemical products, raising the international competitiveness of domestic fluorine chemical enterprises and realizing the transformation and upgrading of fluorine chemical industry. It's foreseeable that there will be some leading enterprises with international competitiveness in China in the future.

    

       

    

      However, the integration of fluorite resources will inevitably encounter resistance. The integration involves the deadline problem of fluorite mining right and cross-regional integration, so it's necessary to balance the interests of enterprises to be eliminated and local governments.

    

       

    

      In fact, the resistance has emerged. The Standard for Fluorite Industry Admittance has been put into practice since March 1, 2010. It has regulated that the disposal ability of every single ore selection line must be at least 100t/d and the enterprises with mining capacity of 30,000t/a are required to build the corresponding selection plants. What's more, plants that fail to meet the criteria must be suspended after July 1, 2011. But after the Standard for Fluorite Industry Admittance was promulgated, there had been no action until May 2012 when the evaluation for fluorite industry admittance have just started to be carried out, and the List of the First Batch of Fluorite Production Lines Which Meet the Standard for Fluorite Industry Admittance hasn't been issued until June 25, 2012.

    

       

    

      Apparently, along with the progress of integration, more and more resistance from enterprises to be eliminated and local governments will emerge in the future.

    

       

    

      Source: China Fluoride Materials Monthly Report 1207

    

      http://www.cnchemicals.com/Newsletter/NewsletterDetail_241.html

    

       

    

      Main content of China Fluoride Materials Monthly Report 1207:

    

      China witnesses uptrend of fluorite ore and downtrend of fluorite powder in H1 2012

    

      China formally carries out integration of fluorite resources

    

      Domestic price of HCFC-22 decreases a lot in June 2012

    

      Development strategy of AHF enterprises in China

    

      Tianye Tolian obtains reparations from Yinyi Mining

    

      Domestic price of aluminum fluoride maintains a decreasing trend

    

      Do-Fluorite purchases 73% share of Baiyin Zhongtian

    

      PFA to witness better development in China

    

      The consumption situation of three grades of PTFE resin in China

    

      LiPF6 industry in China to grow explosively in 12th Five-year Plan period

    

      Domestic demand of LiPF6 to expand due to a new policy to promote energy-savingand new-energy vehicles

    

       

    

      China Fluoride Materials Monthly Report, a monthly publication issued by CCM International on 20th of every month, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. It will help you follow the dynamic throughout the whole value chain immediately.

    

       

    

       

    

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