Mongolia Baotou Steel Rare Earth (Group) Hi-Tech may receive over 100 million yuan (US$16 million) in subsidies from the government, which reveals a draft to subsidize rare earth producers that develop advance technologies and run environmentally friendly operations, reports Shanghai's National Business Daily.
Staff members of the Mongolia Baotou Steel Rare Earth's securities department were not certain whether the subsidy policy would benefit the company and said it would be determined by government's decisions after the policy. In all probability, the subsidies are only likely to have a short-term positive effect. The company's financial report for the last quarter this year showed its revenue dropped 52.76% from the same period last year and its net profits also plunged 71.71% due to declining sales and rare earth prices.
hingfdiuh, Chinese companies have lost possibly tens of billions of dollars on both domestic and export sales of rare earths lately. This cannot continue. I just posted many messages at the yahoo board based on public information (past month) under the handle "cautiousbutoptimystic"
Glad to see you staying long and strong, hing!
Also good to see the mainland Chinese enforcing environmental policy! This kind of work is too dangerous for illegal mining. Too much radioactivity, too much toxicity
