China formally starts to integrate fluorite resources, which will improve the efficiency of fluorite utilization and promote the development of high value-added fluorine chemicals.
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China formally carries out integration of fluorite resources
1. China Formally Carries out Integration of Fluorite Resources
Summary: China formally starts to integrate fluorite resources, which will improve the
efficiency of fluorite utilization and promote the development of high value-added fluorine
chemicals.
Tags: fluorite, fluorite resource, fluorine chemical, export, fluorite export, integration, export
volume
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
2. 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 integration 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.
3. 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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