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Chinese newspaper China Daily reports that rare-earth prices will continue to climb because of the stricter environmental standards that producers will have to meet by Aug 1.
China has seen environmental damage from mining and processing, and depletion of the resource, including polluted water discharged by rare-earth mining in rural Baotou (Inner Mongolia region).
And so, whether that is the reson or not, prices will rise.
"Miners and processing companies that don't submit applications or fail to pass the review will be denied environmental assessment approval for new projects, output expansion and IPOs", said the Ministry of Environmental Protection..
"Industry insiders said this will affect production costs and may raise the prices of Chinese rare earths".
The enwspapers mentions reports that at least 60% of producers could not currently meet the standards and they will have to spend more on environmental protection to pass the review. This is confirmed by an April 11 JP Morgan repor, that says "the prices of domestic rare earths continue to rise as China cuts back on illegal mining".
Since March 28, Chinese prices for cesium have risen an astonishing 49% to $19.76 a kilogram, lanthanum has risen 75% to $14.32, and neodymium 23% to $99.75.
The ETF is REMX:
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