China to Streamline Rare-Earth Industry, Xinhua Says
China will streamline its rare earth industry over five years, state-run Xinhua News Agency said, citing Premier Wen Jiabao.
China will take “stricter” measures to control mining of rare earths and lift environmental standards, while continuing to cap production and exports with the quota system, Xinhua said, citing Wen.
China controls more than 95 percent of the world’s supply of rare earths, a group of 17 chemically similar elements used in hybrid cars, iPods and weapons. The country’s policy of slashing exports of the metals soured ties with major users including the U.S. and Japan, and caused prices to surge.
China will promote new technology in the industry as well as mergers and acquisitions among companies, Xinhua cited Wen as saying. Wen made the speech at a State Council meeting today.
New regulations will be issued to strengthen management in the rare earth industry and control the scale of mines, China Securities Journal reported today, citing an unidentified person.
The rules will address mining activity, smelting and processing companies, and exporters, according to the report. China will encourage the development of large rare earth companies, the report said.
The regulations include higher standards for resource utilization, stricter rules on environmental protection and the use of advanced technology, it said. The report didn’t say when the new policy will be announced.
--Xiao Yu. Editors: Alan Soughley, Indranil Ghosh
To contact the Bloomberg News staff on this story: Xiao Yu in Beijing at yxiao@bloomberg.net;
To contact the editor responsible for this story: Andrew Hobbs in Sydney at ahobbs@bloomberg.net
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