Chinese company suspends rare earth production
- 20 October 2011
- From the section Business
China's biggest producer of rare earths is suspending production for one month in an attempt to stimulate the market.
Baotou Steel Rare-Earth Hi-Tech hopes to boost the slumping prices of the minerals, which are used in TVs, mobile phones and other high-tech devices.
Prices for rare earths have fallen amid the uncertainty about the US and European economic outlooks.
China has about 30% of global rare earth deposits but accounts for about 97% of production.
It is currently merging its rare earth producers to tighten control over the market.
According to Australian miner Lynas, the price of neodymium oxide has fallen 34% since June to $157 per kilogram, while europium oxide is down 35% to $2,904 per kilogram.