china increases ree prices 5 to 15 percent

Just Substitute Arafura for Lynas and Nolans for Mt Weld:

INCREASE OF CHINESE GOVERNMENT’S EXPORT TARIFF ON RARE EARTHS
Key Points:
• Chinese export tariffs on Rare Earths increased to between 15% and 25%
• The export tariff increase on current prices would equate to an international market price of US$12.82/kg of Rare Earths Oxide for the Mount Weld distribution
The Chinese Government authorities announced increases of the export tariff on Rare Earths effective 1 January 2008. The export tariff, which was originally introduced 14 months ago at 10% for all Rare Earths, has been increased as follows:
􀂃 Europium, Terbium, Dysprosium, Yttrium as oxides carbonates, or chlorides 25%
􀂃 All other Rare Earth oxides, carbonates, and chlorides 15%
􀂃 Neodymium as metal 15%
􀂃 All other Rare Earths metals 25%
The export tariff increase on current prices would equate to an international market price of US$12.82/kg of Rare Earths Oxide for the Mount Weld distribution.
Lynas Corporation (“Lynas”) (ASX code LYC) believes the increase of the export tariff highlights the shortage of Rare Earths and confirms the policy of the Chinese Government to protect the increasingly tight supply of Rare Earths in China. China is essentially the only current global source for these strategic elements until Lynas’ Mount Weld project comes on stream in 2009.
“With Lynas’ non China assets the company will benefit from these structural changes through the increase in the international price for these essential elements as well as continued international concern of security of Chinese supply” commented Executive Chairman, Nicholas Curtis.

Courtesy of the lynas release today