Two of China major rare earth miners reported sharp falls in profits in 2014, in the face of poor demand and weak prices. Major producer, REHT reported on Friday 5.84 billion yuan, or 949 million U.S. dollars, in operating revenue in 2014, down 31.1 per cent from 2013. Net profits plummeted by 57.4 per cent to 643 million yuan, according to the company annual report. On the same day, China Minmetals Rare Earth Co. posted a 64.8 per cent drop in operating revenue to 702 million yuan and its balance sheet turned from black to red with 55.8 million yuan in net losses. China Minmetals deliberately reduced sales last year, leading to great losses. Both enterprises blamed weak demand and low prices. Rare earth prices are at a multi-year low, despite a slight rebound at the end of 2014.
Upgrading the industry, big enterprises were merged with dozens of small miners around the end of last year to establish six major rare earth groups - REHT, China Minmetals, Xiamen Tungsten Co., Aluminum Corporation of China, Guangdong Rare Earth Co. and China Southern Rare Earth Group. The rare-earth branch of Xiamen Tungsten made a loss in 2014 and the remaining three firms have yet to release their annual reports. Rare earths, a class of 17 minerals, are some of the most sought after metals due to their military use and role in green technology like wind turbines and car batteries. China meets over 90 percent of the world demand, but at the cost of much pollution during mining and processing.
From shanghaidaily.com but withdrawn for some reason
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