Chinese Government’s Myriad Ways it Subsidizes Rare Earth Mining and Processing Operations-Transport Example

Highlights

• The Ministry of Transport improved thawing warehouse operations to facilitate vehicle transportation for Baotou Iron and Steel Group during winter.
• Six thawing warehouses can simultaneously thaw 288 vehicles, implementing strict operational protocols to ensure transportation safety and efficiency.
• The government’s support demonstrates how Chinese industrial sectors receive systematic logistical assistance to maintain operational continuity.

The Ministry of Transport efficiently picks up and distributes vehicles to facilitate the transportation of raw materials and fuels for Baotou Iron and Steel Group.

Since the beginning of winter, the temperature in Baotou has continued to drop due to the influence of cold air. On November 15, Baotou Steel's thawing warehouses were fully ignited and heated up to prepare for the cold winter. The Ministry of Transport has improved the operation methods of thawing warehouses to pick up and distribute vehicles and ensure the smooth railway transportation of raw materials and fuels with efficient operations. 

Rare Earth Exchanges reports on this as an example of how Chinese industry is subsidized by layers of government, thereby externalizing the costs of the consolidated, vertically integrated rare earth element industry for global competitive positioning.

Some Details

There are 6 thawing warehouses in the Baotou Steel plant area, all of which are in working state and can thaw 288 vehicles at the same time. Since November 17, some incoming vehicles have begun to stick to the sides and bottoms due to low temperatures, and various thawing warehouses have been put into use one after another. The Ministry of Transport has added locomotives and drivers to the rare earth steel stations and raw material stations involved in the thawing warehouses, and scientifically organized transportation according to the latest operation methods.

During the process of picking up and matching vehicles in the thawing warehouse, the staff on duty strictly implement the standardized operation and confirmation system, inform in advance, keep records, control the number of matching vehicles, and ensure single picking and matching, single machine hanging in the warehouse, and double confirmation. Strengthen the management of the crossing, limit the speed of passing, implement the "one-time forward pull", "one stop and then hang", "one car one management", "once parked" and other systems to ensure driving safety. Reasonably arrange the use of the thawing warehouse, shorten the time for picking up and matching vehicles, improve the vehicle turnover rate, and create transportation guarantees for the efficient operation of the thawing warehouse.

This recent media report evidences but one of many ways that Chinese government ministries and agencies support the costs of the rare earth enterprise.