China mulls creation of rare earths association

China is likely to create a rare earth industry association in May, Reuters reported, citing state media. The move would follow last week’s announcement that the country plans to create a "state planning" zone to limit production of important rare earth materials used in batteries, wind turbines and other high-tech products, and comes after the country cut its export quota of the materials by 35% from last year for the first half of 2011. The association would seek to improve the pricing power of China’s miners globally. China, which accounts for around 97% of global supply of rare earths, said it hoped to protect the environment and conserve its reserves of the metals. The 93-member association would establish a comprehensive reserve system for the industry, in addition to implementing industry restructuring and introducing new pollution standards.