Rare Earths Mixed as China Aims For More M&A In the Sector

Rare earths are mixed today, following word that China will be looking to streamline the industry more over the next several years.

Reports, coming from China state-run Xinhua News Agency, quoted Chinese Premier Wen Jiabao on the news.

According to a document release from an executive meeting of the State Council, "China should accelerate industrial upgrading and technological innovation to protect the environment and save resources." To carry out the plan, China will "maintain rational production and inventory control, make better use of domestic and overseas markets and resources, and have active international cooperation for a healthy and sustainable development."

Bloomberg also cites Wen as saying that more M&A will take place in the sector.

Xinhua also notes, "[Additionally], authorities would carry out special campaigns to crack down on illegal mining activities to maintain order in production, further consolidate the industry and promote technological innovation, said the document."

As noted, rare earth miners are mixed on the report:

• Rare Element Resources Ltd. (NYSE: REE) is 0.4% lower;
  
  
• Molycorp, Inc. (NYSE: MCP) is up 0.3%;
  
  
• China Shen Zhou (NYSE: SHZ) is down 0.14%; and
  
  
• Avalon Rare Metals, Inc. Ordina (NYSE: AVL) is up 3% in morning trading.

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