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Chinese Rare Earth Explorers Positioned to Benefit From New Regulations


Post Date: 16 Apr 2011    Viewed: 546

It is estimated that China holds about 30 per cent of the world's rare earth deposits, but accounts for over 95 percent of global production. Demand for the metals is expected to surge going forward, as the elements are an integral part of modern technology. The Bedford Report examines the Rare Earth Elements Industry and provides research reports on China GengSheng Minerals, Inc. (NYSE Amex: CHGS) and China Shen Zhou Mining & Resources, Inc.


China's Land and Resource ministry recently announced that it would not approve any new prospecting or production licenses for rare earths, tungsten or antimony until June 30, 2012. China has begun to impose more discipline on its rare earths industry with a series of policies aimed at cleaning up the sector. The country has already cut export quotas by 35 percent for the first half of 2011.


Chinese officials have explained that such high levels of rare earth production are not environmentally sustainable, and that China needed to retain supplies for domestic industries.


The Bedford Report releases regular market updates on the industrial metals sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.


Xiaojing Yu, Chairwoman and CEO of China Shen Zhou Mining & Resources, says that the company is "well positioned to benefit from the new regulations and policies." China Shen Zhou Mining & Resources recently posted record profits as a result of surging rare earth prices. Last month the company reported a four-fold jump in revenues in the fourth quarter of 2010. The gains were driven by higher commodity prices and higher processing of a larger amount of fluorite ore in the fourth quarter.


For its fiscal fourth quarter China GengSheng reported a 21.8% year-over-year revenue improvement to approximately $18.6 million. The increase in revenue was mainly attributable to increased export sales from the company's fracture "proppant" segment as well as contributions from fine precision abrasive products.


The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks.

 


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