China plans to set up a rare-earth conglomerate, the state-run China Securities Journal reported Thursday, citing Vice Minister for Industry and Information Technology Su Bo.

The "final results" of that plan will be released by the end of the year, Mr. Su said in the report.

He said the central government is also stepping up efforts with local authorities to eradicate illegal rare-earth mining.

Beijing has said the country's rare-earth industry, which controls 95% of global output, is too fragmented and plagued by smuggling and other problems. Rare-earth metals are used in the manufacture of high-tech wares ranging from iPhones to missile systems.