China plans to increase mine output in world’s largest rare earth deposit by 50%

Lead

China is set to expand production capacity at the Bayan Obo mine in Inner Mongolia, the world's largest rare earth deposit, with an investment exceeding half a billion yuan (US$74 million). The expansion will raise the mine's annual output by 50 per cent, from 10 million to 15 million tonnes, according to the South China Morning Post.

The project, operated by Baogang Group, is primarily aimed at increasing iron ore output, with rare earths expected to come as a by-product. Bayan Obo is a complex polymetallic deposit containing iron, rare earths, fluorite, niobium, scandium, and thorium.

Coverage Comparison

The South China Morning Post reported on the expansion plans, framing them as an economic investment and production increase driven by government policy and market demand. The report highlighted the project's focus on iron ore while noting that rare earth production remains subject to quotas.

In a separate report, the same outlet explored the geological potential of the Bayan Obo deposit. That coverage, more exploratory in tone, highlighted scientific research suggesting the mine could contain far more resources underground than currently reported. It emphasized that the mine has served as the backbone of China's rare earth industry for decades.

Key Claims

• China plans to expand production capacity at the Bayan Obo mine with an investment of over half a billion yuan. The expansion will increase annual output by 50 per cent, from 10 million to 15 million tonnes, as reported by the South China Morning Post.
• Bayan Obo is the world's largest rare earth deposit, according to the same report.
• The project is mainly aimed at increasing iron ore output, with rare earths as a by-product, according to Baogang Group, the operator.
• Rare earth production is subject to quotas, which affects the motivation to mine more ore, as noted by Li Yang, a top geologist at Peking University, in an interview with the South China Morning Post.
• The Bayan Obo mine could contain more resources underground than currently reported, according to a leading Chinese geologist, Yang Li.
• The mine has been the backbone of China's rare earth industry for decades, containing 100 million tonnes of rare earth reserves, as reported by the South China Morning Post.
• The currently reported figure of reserves may not represent the full geological potential of the region, scientists believe.
• A 2025 study led by Yang, published in the journal Science Advances, found that Bayan Obo was formed through multiple stages of carbonatite activity, including a younger mineralisation event that was key to forming the deposit.