Tuesday, August 18, 2009

Wind: China to support three domestic enterprises for rare earth development. And: Baotou Steel Rare-Earth net loss hits $9.83 mln in H1

From ChinaMining via SteelGuru:
China Mining quoted analyst said according to China newly drafted plan for rare earth sector, the government will give key supports to the domestic three metals enterprises for their rare earth development.

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

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 are preparing to establish a national rare earth association which is expected to push forward merger and acquisition of the domestic rare earth resources.

The analysts predict that about 80% of small and mid size enterprises may quit the rare earth exploration in the M&A.
From Interfax-China:
Shanghai. August 18. INTERFAX-CHINA - Shanghai Stock Exchange-listed Inner Mongolia Baotou Steel Rare-Earth Hi-tech Co. Ltd., a major domestic rare earth producer, reported on Aug. 18 a net loss of RMB 67.19 million ($9.83 million), compared to a net profit of RMB 247.14 million ($36.16 million) in the same period of 2008.

Why is this post headlined "Wind"? See:
Wind: Why rare earth metals matter