2011-03-14 16:04

Commerce Minister Chen Deming said China will announce this year's second batch of export quotas for rare earths, but he did not give the exact figure, China Security News reported on Monday.

Rare earth metals comprise of 17 minerals and some are used in high-tech industries ranging from hybrid cars to missiles. China produces more than 95 percent of the world's total supply although it has only about 30 percent of global reserves.

Last year, China implemented a series of policies and measures to regulate the rare earths industry, restrict the overdevelopment and address environmental concerns, according to the report. It reduced the year's export quotas by 30 to 40 percent.

In December 2010, the ministry announced 2011's first batch of export quotas, 14,446 tons - an 11-percent decrease from the corresponding figure for last year, arousing concerns that it may cut the export quotas significantly in 2011.

In addition, Chen declared that the ministry is confident it will restrain this year's consumer price index (CPI), a main gauge of inflation, to around 4 percent, the newspaper said.

He said that curbing the inflation would not be a big problem if the supply is sufficient, the market is in order and the circulation is unobstructed. The minister also accentuated the importance of implementing a robust monetary policy in terms of holding down inflation, the report said.