Bloomberg Inner Mongolia Baotou Steel Rare Earth Hi Tech Company, a Chinese rare earths producer, jumped by the maximum daily limit in Shanghai trading on the outlook for prices of the metal used in radar and a range of electronics.

Inner Mongolia Baotou gained 10% to CNY 97.26 in Shanghai the highest since the shares made their debut in 1997. Rising Nonferrous Metals Share Company advanced 5.8% to CNY 77.93.

China Securities Journal reported that concerns about overexpansion of rare earth mining and environmental damage signal an end to cheap rare earth supplies from China.

Mr Yang Wanxi director of a rare earth expert panel under the Baotou Municipal Committee said that a new resource tax would add to price increases. China controls more than 95% of the world's supply of rare earths used in Blackberrys, hybrid cars and sonar systems. The nation on March 31 extended by 12 months a ban on exploring for the minerals and opening new mines boosting prices.

He said that China has been curbing domestic output growth and exports of rare earths and minor metals to conserve resources and protect the environment, tightening global supplies and prompting users such as Japan to seek alternative sources.

(Sourced from Bloomberg)