Chinese miners of rare earths are bound to receive a funding support from China's Communist Party-led government to encourage further development and upgrades in the badly performing sector recently dealt with environment problems.
The US government, through its Department of Energy, will allot some $120 million to fund the creation of a rare earths research facility that will aid the economic leader lessen if not totally cut off its dependence from China, the world's stronghold of the essential 17 precious elements.
Without providing exact details nor figures, China's finance ministry said in a statement that it has created a special fund that would see miners of rare earths receiving a subsidy of 1,000 yuan ($160) for every tonne of rare earth oxides produced. Smelters, meantime, will receive 1,500 yuan ($240) per tonne.
Financial support would likewise be extended to companies to upgrade production facilities, as well as to fund research and development projects, China's finance ministry further said.
Authorised high-tech application projects will get financial support of up to 20 per cent of their yearly investment, of which the total amount will not exceed 50 million yuan for a single project.
Rare earths are a group of 17 non-renewable metals essential to the application of a wide range of products and materials like smart phones, wind turbines and electric car batteries, among others.
Local governments would likewise receive a one-time bonus for funding crackdowns on illegal mining, the statement said.
China is the world's stronghold and largest rare earths element exporter. But some companies have been forced to shut down because of falling rare earth prices and weak demand.
Although it has only 23 per cent of the world's rare earths reserves, China however feeds more than 95 per cent of global demand.
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