China's Ministry of Industry and Information Technology, National Development and Reform Commission, and Ministry of Natural Resources announced on August 22, 2025, the "Interim Measures for Total Volume Control Management of Rare Earth Mining, Smelting and Separation." This is an important implementing regulation based on the "Rare Earth Management Regulations" that came into effect in October 2024.
Overview of Total Volume Control Management
Implementation of total volume control management for rare earth mining (including rare earth minerals) and smelting/separation of various rare earth minerals:
Management Process:
- MIIT coordinates with related departments to formulate annual total volume control indicators
- After State Council approval, allocation to production enterprises
- Enterprises conduct production activities within allocated indicator ranges
2024 Total Volume Control Indicators
- Rare Earth Mining: 270,000 tons
- Smelting and Separation: 254,000 tons *Allocated to enterprises in two phases
New Obligations for Enterprises
Reporting Obligations
- Report monthly and annual total volume control indicator fulfillment to county-level government departments
- Establish rare earth product flow recording systems
System Input Obligations
By the 10th of each month, enterprises must input the previous month's rare earth product distribution information into the "Rare Earth Product Traceability Information System." This significantly enhances transparency throughout the rare earth product distribution chain.
Supervision and Penalties
- Enhanced supervision by county-level and above government departments
- Strengthened crackdown on illegal activities
- Penalties for violating enterprises: Reduction of next year's total volume control indicator allocation
Market Impact and Expert Views
Analysis by Chen Zhanheng, Deputy Secretary-General of China Rare Earth Industry Association:
Positive aspects:
- Avoids price volatility from resource over-extraction
- Contributes to market price stabilization
Concerns:
- Including imported minerals in total volume control may risk price increases during demand surges
- Potential impact on stable operations of downstream enterprises
Background and Significance
This management measure aims to strengthen strategic management of rare earth resources and sustainable development. By abolishing the 2012 old measures and establishing a stricter management system, it seeks to balance healthy development of the rare earth industry with resource protection.