China Proposes New Regulations on Total Quantity Control of Rare Earth Mining and Smelting

China's Ministry of Industry and Information Technology (MIIT) has released two draft regulations for public consultation, aiming to strengthen the management of rare earth resources and promote high-quality development of the industry. The proposed rules focus on total quantity control of rare earth mining and smelting, as well as a comprehensive traceability system for rare earth products.

The draft documents, titled "Measures for the Administration of Total Quantity Control of Rare Earth Mining and Rare Earth Smelting and Separation (Interim) (Draft for Comments)" and "Measures for the Administration of Traceability of Rare Earth Products (Interim) (Draft for Comments)", were published on February 19, 2026. They are designed to implement the "Rare Earth管理条例" (Rare Earth Management Regulations), ensuring the protection and rational utilization of rare earth resources, safeguarding ecological security, and fostering sustainable industrial growth.

Key Provisions of the Proposed Measures

1. Total Quantity Control for Mining and Smelting

The MIIT, together with the Ministry of Natural Resources and the National Development and Reform Commission (NDRC), will be responsible for the overall administration of rare earth mining and smelting quotas. They will set and allocate annual total quantity control indicators for rare earth mining and smelting and separation activities.

Only enterprises that are part of large state-backed rare earth groups—and their affiliated mining and smelting entities—will be eligible to receive these quotas. No other organizations or individuals may obtain rare earth indicators or engage in mining, smelting, or separation operations without authorization.

2. Mandatory Product Traceability System

The MIIT will collaborate with the Ministry of Natural Resources, Ministry of Commerce, General Administration of Customs, and State Taxation Administration to establish a national rare earth traceability system. This system will enable end-to-end tracking of rare earth products throughout the supply chain and facilitate data sharing among relevant government departments.

Key data—including mining quotas, export licenses, customs records, and special invoices—will be integrated with the traceability platform to ensure transparent and compliant management of rare earth resources.

Industry Impact and Global Relevance

These proposed measures mark a significant step in China's ongoing efforts to consolidate its rare earth industry, enhance resource security, and improve environmental oversight. By strictly controlling production quotas and implementing full-chain traceability, China aims to stabilize supply, combat illegal mining, and support the development of high-value-added rare earth applications.

For international stakeholders—including importers, manufacturers, and investors—the regulations signal a more structured and transparent framework for rare earth sourcing from China. The emphasis on traceability also aligns with global trends toward supply chain transparency and responsible sourcing.

Public Consultation

Interested parties and the general public are invited to submit feedback on the draft measures until March 21, 2026. Comments can be sent to the MIIT via the official channels specified in the announcement.

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