China to regulate rare earth industry Published 12:23 PM, 16 Feb...

China to regulate rare earth industry

Published 12:23 PM, 16 Feb 2011

From
http://www.businessspectator.com.au/bs.nsf/Article/China-to-strengthen-supervision-of-rare-earth-indu-E52R3?OpenDocument&src=hp10

Reuters

SHANGHAI - China will soon publish rules to strengthen supervision of the country's rare earth industry in a move that is likely to "drastically" change the landscape of the sector, the official China Securities Journal reported.

New rules will require Chinese rare earth producers to make better use of natural resources, reduce pollution, control the scale of mining and adopt more advanced mining technologies, said the newspaper, citing unidentified government sources.

The regulations will also encourage consolidation of China's rare earth industry, it added.

China's International Business Daily reported on Tuesday that the country was likely to create a rare earth industry association in May to help its miners obtain more pricing power in the global market.

China, which produces about 97 per cent of the global supply of the metals, cut its export quotas by 35 per cent for the first half of 2011 versus a year earlier, saying it wanted to conserve reserves and protect the environment.