China will allocate special funding from its central budget to support a restructuring in the rare earth industry. This is according to a notice by the Ministry of Finance.
The capital will mainly be used to fund local government crackdowns on illegal mining, upgrades to companies' facilities to meet higher environmental standards, R and D, and high-tech applications.
The allowance ranges from one thousand yuan, or about 159 US dollars per ton of rare earth, to 15 hundred yuan per ton. And money allocated to authorized high-tech application projects will be up to 20 percent of their annual investment.
The total amount should not exceed 50 million yuan for one project. The move comes after many companies in the sector reported plunging profits, and decided to halt production to boost prices.
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