china ramping up rare earths output to highest level in 5 years
BEIJING (TheStreet)-- On Thursday, China Mining Corporation was told to raise total rare earth production to its highest level in five years. The government ordered a 13% increase in production from last year\'s level, which could be near Hard term price-to- Find use in a wide variety of metals Technical equipment from laser to hybrid vehicles. But the latest annual quota of rare earths has affected the country. China\'s Minmetals, Baotou Steel Rare Earth, aluminum and other state-owned mining companies. of China (ACH) Put more pressure on global competitors such as U. S. Molycorp. MCP) Lynas in Australia (LYSCF). China\'s mines produce most of the 17 rare earth metals in the world. Estimates of China\'s global market share in recent years range from 60% to 90%. The dominance has sparked controversy with other countries over quotas and export restrictions imposed in Beijing in 2010. The row ended with a World Trade Organization ruling against China. Most of these odd-named metals, such as yb and eu, are sold to China. Manufacturers, including multinational companies. But exports are clearly increasing. According to industry data released by China Rare Earth Information Network, China\'s rare earth market has increased by 19% this year. on- From January to 5, the export license of rare earth obtained by Shanghai company increased by about 800. On Thursday, the Ministry of Land and Resources will national 2014 of rare earth quota as 105,000 tons higher than that of last year of 93,800. The ministry also set a breakthrough quota for individual provinces. In addition, it announced production quotas for other limited companies Use metals such as tungsten and antimony. Amid concerns about environmental damage, illegal exports and overcapacity in the mining sector, the government cut the national rare earth quota in 2012 from 46,900 tons in the previous year to 93,000 tons and to 89,000 tons in 2010. It has also cut export quotas, spurred the expansion of Molycorp and Lynas, but has upset global buyers of rare earths. To further control the industry, the government has been forcing small coal mines to close or merge with major businesses since 2012. In January, for example, Baotou said it had taken control of nine smaller companies. Close the company and lay Workers are eligible for financial support from the government. At least until June 2015, new rare earth mining was suspended. As a result, miners, China\'s largest mine, has become bigger. The biggest, Shanghai- The listed Baotou rare earth reserves are huge, and about 54,000 tons of rare earth can be processed annually. It has also reportedly stored about 80,000 metric tons. Securities analyst Guangzheng Hang Seng said in a recent analysis that because of rising demand for electricity, it likes China\'s rare earth mining stocks. Vehicle batteries, wind turbines and magnets implanted with \"smart\" appliances. Still, the government\'s latest quota is clearly not impressive to investors. Baotou shares fell 1. 5% ends at 18. For example, on Thursday, the price of non-ferrous metals in China fell 2% to end at 9: 00. 26 yuan Shenzhen exchange. Since the news of the global fall in rare earth prices in early September, rare earth mining stocks on the Chinese exchange have been declining. At the time of publication, the author did not hold a position in any of the above shares. This article represents the views of the contributors, not necessarily the views of Wall Street or its editors.