New Chinese Subsidies Could Benefit Environmentally Friendly REE Producers

InvestorIntel recently reported that China’s Ministry of Industry and Information Technology and Ministry of Finance have together released a draft of a regulation that would “subsidize rare earth producers that develop advance technologies and run environmentally friendly operations.

As quoted in the market news:

Although many of its details have not been disclosed, [the regulation] is set to subsidize rare earth producers that pass environmental test standards and reach a production capacity of 1,000 yuan (US$161) per ton of rare earth mining and dressing, 1,500 yuan (US$241) per ton of purified rare earth and 500 yuan (US$80) per ton of metal smelting.

The regulation would benefit large businesses who have met environmental regulations and have stronger production capacities, such as Mongolia Baotou Steel Rare Earth, China’s largest light rare earth producer. According to a Xiangcai Securities report last year, the company had the greatest rare earth selection and purring abilities in the world and produced 220,000 tons of 50% rare earth oxides and 65,000 tons of rare earth oxides.

Click here to read the full InvestorIntel report.