China Rare Earth takes off

China Rare Earth (0769.HK)popped almost 40% today. Volume was almost 280 million compared to the usual 10 million per day. Thus far the only explanation I can find is China to tax more on two minerals
China has begun to restrict the mining and production of refractory clay and fluorite over concerns about reserve decrease and environmental pollution, according to a notice posted on the central government's website Sunday.

The government would implement comprehensive measures, which involve taxation, production planning management, industry entry standards and export policies, for the restriction, says the notice posted on www.gov.cn.

Land and resources authorities would enhance efforts to address problems in refractory clay and fluorite mining, and would not accept applications for new prospecting and mining projects starting from Jan 2.

The central government ordered authorities to promote industrial restructuring, close down backward production facilities, and implement strict industry entry regulations to avoid blind investments.

The notice says the industry entry standards for refractory clay and fluorite enterprises would be published on March 1 this year with immediate effect.
The notice also calls for intensified customs efforts to crack down on smuggling and supervision on refuse ore treatment.

The government plans to raise the rate of resource tax on the two minerals.

No comments:

Post a Comment