China changes rare earth strategy

China will provide subsidies to support failing rare earth producers, marking a move away from previous policy that had led to tightened supply, Financial Times reported. Licensed miners of rare earth, key metals used mostly to manufacture electronics, will receive subsidies of US$240.81 (RMB1,500) per metric ton of processing capacity and US$160 per metric ton of mining capacity. The total value of the subsidies will be US$35-40 million for the sector annually, according to Financial Times figures. Prior to the new scheme, China had implemented policies that reduced the production of the metals, which involved the closing of unlicensed mines and increasing control over exports, measures that Beijing claimed were a bid to prevent pollution and illegal sales. The subsidies indicate the country is concerned about losing its status as the leading producer of rare earth.