China wields rare earth power

The Ministry of Industry and Information Technology and the National Development and Reform Commission have submitted a draft plan to the State Council for approval,the paper said,citing sources close to the matter.

Under the plan,the Ministry of Land and Resources will licence a few state firms to mine rare earths,which will concentrate the industry on mining more valuable ion-absorbed type rare earths in the south of China.

China is believed to have 97 percent of the world8217;s total rare earth ores,which are processed and used in a wide range of new technologies from hybrid cars to wind turbines.

China exported 14,044 tonnes of rare earths in the first four months of this year,almost three times as much as in the same months of 2009,according to data from China8217;s customs.

The Ministry of Land and Resources said last month it would launch a six-month crackdown on illegal mining of strategic minerals,including rare earths.