Bloomberg reported that China, the world’s biggest supplier of rare earths, increased export quotas to companies by 2.7% to the highest in three years after they complied with environmental standards.

Baotou Iron & Steel Group, Aluminum Corporation of China, China Minmetals Corporation and other companies were allowed to export 9,770 tonnes of rare earths in the second batch of quotas for the year. That takes the total to 30,996 tonnes this year after allocations of 10,546 tons in December and 10,680 tonnes in May in the first batch of export quotas.

The ministry said that the new export quotas will increase supplies of rare earths, 17 chemically similar elements that are used in Apple Inc’s iPod music players, flat screen televisions, magnets and hybrid cars. China, which has more than 90% of the global rare earth market, will keep quotas little changed this year after exporters used half the quantity permitted last year because of weakening demand.

Lynas Corporation an Australian miner developing the world’s largest rare earths plant in Malaysia, dropped to a more than 2 year low in Sydney. The stock which declined as much as 8% fell 2.9% to 66.5 Australian cents at the close, the lowest level since July 20th 2010.

The ministry said that 6 companies that missed the first batch of quotas including Inner Mongolia Baotou Steel Rare-Earth Hi Tech Company, a unit of Baotou Steel, Guangdong Zhujiang Rare Earths Company and Huhhot Rongxin New Metal Smelting Company won export allocations in the second round after meeting environment protection standards.

Source - Bloomberg

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