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    90 Percent of Chinese Rare Earth Miners Operating at a Loss

    Teresa Matich
    Aug. 12, 2015 10:41AM PST
    Rare Earth Investing

    Mining.com reported that up to 90 percent of rare earth producers in China are operating at a loss due to lower rare earth prices.

    Mining.com reported that up to 90 percent of rare earth producers in China are operating at a loss due to lower rare earth prices.
    As quoted in the publication:

    According to the Association of China Rare Earth Industry, local companies have been losing money for months and many are expected to close up shop before year-end.
    Chen Zhanheng, the group’s deputy secretary-general, told China Daily the main issues weighing on the market are oversupply and illegal mining.
    Many companies rushed into rare earth mining and production business when prices were high, he told the paper, producing much more than what the market really needed.
    “Rare earths are not as difficult to mine and process as many seem to think, so many illegal miners are bypassing regulations to dig and smelt the metals. This, in turn, has led to a glut in the market,” he said.

    Click here for the full article from Mining.com.

    rare earth producerschinachina rare earth
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