China's largest producer of rare earths and non-ferrous metals receives government subsidies

China's Rising Nonferrous Metals Group received 18.75 million yuan or $ 3.05 million in government subsidies. The company reported this to the Shanghai Stock Exchange. Subsidies were offered to subsidiaries of the company - Guangdong Fuyuan Rare Earth New Material Co. and Pingyuan Huaqi Rare Earth Industry Co, and will be considered non-operating income of the companies.

Rising Nonferrous managed to earn a net profit of 6.98 million yuan in the first half of 2014, compared to the massive losses recorded in the first half of 2013. The company believes that the allocation of government grants is attributable to the higher sales revenue generated during the 2014 period. At the same time, Rising Nonferrous stepped up the exploitation of rare earth mines.

China is rich in rare earths and is making vigorous efforts in the mining industry, so more than 90 percent of the world's rare earths come from China. At the same time, China maintains government control over the development of rare earth elements. It is estimated that the annual export volume of rare earth metals in China will exceed 20,000 tons.

Global consumption of rare earth metals is estimated to reach 0.3 million tonnes in 2020 due to the rapid development of high technology. China ranks first in the world in terms of production of rare earth and luminescent materials, hydrogen storage materials and polishing materials. In addition, the rare earth industry will continue to grow as consumer demand increases every year.