China Knowledge reported that Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd the biggest rare earth producer in China net profit for 2011 might have surged by over three folds from CNY 751 million in 2010.

The Shanghai-listed firm attributed the profit jump to increased rare earth prices which were boosted by the Chinese government's stimulus package in rare earth industry.

According to statistics, the average price of dysprosium-iron alloy, one kind of rare earth increased from CNY 1.45 million per ton in January 4, 2011 to CNY 12.3 million per ton in August 30 2011 representing a jump of over seven folds.

Analysts said China owns 33% of the global rare earth reserves while the company rare earth reserves account for 83% of the total in China, adding that the Inner Mongolia-based firm currently has an annual rare earth output capacity of 60,000 tons.

(Sourced from China Knowledge)