China's Rare Earth Development Plan to Benefit Leading Metals Firms

BEIJING, Aug. 13 -- According to China's newly drafted plan for rare earth sector, the government will give key supports to the domestic three metals enterprises for their rare earth development, analysts say.

The three enterprises are Inner Mongolia Baotou Steel Rare-earth Hi-tech Co., China Minmetals Corporation and Jiangxi Copper Corporation.

However, the stockpiling policy for rare earth products can hardly be formulated, they note.

A senior official with the Ministry of Industry and Information Technology noted that China would control rare earth output to promote the industry's sustainable development.

An insider revealed that Baotou Steel Rare-earth Hi-tech Co. will get the government's support for its resource distribution as well as the refining technology upgrading.

Now the National Development and Reform Commission is preparing to establish a national rare earth association which is expected to push forward merger and acquisition (M&A) of the domestic rare earth resources.

About 80 percent of small- and mid-size enterprises may quit the rare earth exploration in the M&A, the analysts predict.