Jan. 31, 2012 (China Knowledge) - Inner Mongolia
Baotou Steel Rare-Earth (Group) Hi-Tech Co Ltd<600111
>, the biggest rare earth producer in China, yesterday announced that its net profit for 2011 might have surged by over three folds from RMB 751 million in 2010.
firm attributed the profit jump to increased rare earth prices, which were boosted by the Chinese government's stimulus package in rare earth industry.
According to statistics, the average price of dysprosium-iron alloy, one kind of rare earth, increased from RMB 1.45 million per ton in January 4, 2011 to RMB 12.3 million per ton in August 30, 2011, representing a jump of over seven folds.
China owns 33% of the global rare earth reserves, while the company's rare earth reserves account for 83% of the total in China, said analysts, adding that the Inner Mongolia-based
firm currently has an annual rare earth output capacity of 60,000 tons.
The combined output capcity of rare earth totals around 100,000 tons in China, accounting for 97% of the total worldwide, sources reported.