In January, China dropped export quotas on rare earths which had been imposed since 2010, and in April the country lifted a ban on export tariffs on the minerals altogether.

According to Association of China Rare Earth Industry figures, the measures are likely to help boost overall exports to about 30,000 tons this year.

The Ministry of Industry and Information Technology has revealed that it has shut down 55 illegal rare earth producers and 22 illegal mines over the past four years, and will continue to strengthen its efforts at cracking down on black market trade, while at the same time helping to restructure and consolidate the overall rare earth sector.

Yuan Hui contributed to this story.