Rare Element Resources Ltd (REEMF)

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March 24, 2011, 5:46 a.m. EDT http://www.marketwatch.com/story/china-to-tax-rare-earths-from-april-1-report-2011-03-24

China to tax rare-earths from April 1: report -- China will impose a tax on rare-earth minerals with effect from April 1, according to a Chinese state-owned media report Thursday. The tax has been set at 60 yuan ($9.1) per ton of light rare-earth minerals, and 30 yuan per ton of medium- and heavy-rare earth minerals, Xinhua news service reported, citing a joint statement from the Ministry of Finance and the State Administration of Taxation to the nation's rare-earth producers. Zhang Zhong, general manager of Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. /quotes/comstock/28c!e:600111 (CN:600111 84.05, -1.58, -1.85%) , said the tax would increase the company's production costs by about 720 million yuan this year, according to the report. China is currently by far the world's largest producer of rare earths -- minerals that are crucial in the manfacture of several electronic and automobile products.