China Minmetals Rare Earth Co. Ltd, a leading miner in the business, posted a drastic decline in net profits in the first quarter of 2014 due to low rare earth prices.

The company made 1.6 million yuan ($261,341) in net profits from the start of January to the end of March, diving by 94.1 percent year on year, according to a financial report released on Monday.

The miner's business revenue also declined by 98.5 percent to reach 3.3million yuan in the first three months.

The financial results came after a 20.5-percent decline in net profits and a 57.6-percent drop in business revenue in 2013.

Along with weakened profitability, the company's rare earth stockpiles also surged by 167.8 percent in 2013.

"The grim outlook of the global economy and sluggish domestic demands hammered rare earth prices and weighed on mining companies," said the report.

The company's shares tumbled by 2.8 percent in Monday's trading.