This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sector Snap: Rare Earth Metal Miners Rise

NEW YORK (AP) â¿¿ Shares of rare earth mining companies jumped Wednesday as Wall Street saw good news in the Chinese government's announcements about the state of its rare earth metal reserves.

The Chinese government issued a report defending its restrictions on exports of the metals, saying its reserves have declined because of excessive and sometimes illegal mining. It also cited serious environmental damage from the mining operations. China has about a third of the world's rare-earth deposits but accounts for over 90 percent of their production. Beijing alarmed global manufacturers by imposing export quotas in 2009.

Rare earths are 17 minerals used to make goods including hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapor lights and camera lenses.

Gabelli & Co. analyst Brian Chin said that in addition to defending the quotas, the Chinese government is announcing that it will impose stricter environmental standards on mining companies and continue to crack down on illegal mining in addition to consolidating the industry and making it more efficient. He said China has been following those policies for the last few years, but this is the first formal announcement of its plans.

He said the regulations will have the effect of limiting production and raising costs for Chinese producers, benefiting international companies that have long faced stiffer regulation and struggled to compete against Chinese exports.

Shares of Vancouver, British Columbia-based Rare Element Resources Ltd. advanced 58 cents, or 12.7 percent, to closed at $5.15 on Wednesday while shares of Greenwood Village, Colo.-based Molycorp Inc. climbed $1.77, or 8.6 percent, to $22.43. Toronto-based Avalon Rare Metals Inc. stock rose 8 cents, or 5.2 percent, to $1.63.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,151.88 +110.34 0.61%
S&P 500 2,108.85 +4.65 0.22%
NASDAQ 5,045.7610 +13.01 0.26%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs