China to increase rare earth purchases, equities move up

|By:, SA News Editor

Rare earth stocks (REMX) start strong after reports overnight say China is likely to purchase billions of yuan of rare earth minerals starting next month to bolster its strategic reserves.

Six large rare-earth producers - including Baotou Steel, China's largest rare earth producer by output - are on the list for the purchasing program, which was launched last year.

Also, one of China’s largest rare earth producers says it plans to raise funds through private placement to build a plant with the capacity to produce 7K tons/year of rare earth oxides.

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