China, the world's biggest producer and exporter of rare earths, has amassed almost USD 277 million in trade since the establishment of an exchange in March this year, according to a report.
Gu Ming, general manager of the Baotou Rare Earth Products Exchange, said that by the end of September, more than 9,700 tonnes of rare earths have been traded, with the total turnover reaching 1.7 billion yuan (USD 277 million).
"The latest data is sufficient proof that the exchange has been in good operation," state-run Xinhua quoted Gu as saying.
Located in Baotou City, north China's Inner Mongolia Autonomous Region, the exchange was initiated by Baotou Steel Rare Earth (Group) Hi-Tech Co (BSRE), China's leading rare earth producer, and another 12 firms and institutions with a registered capital of 120 million yuan (USD 19. 32 million) to regulate trade of the precious ore.
Zhang Zhong, general manager of BSRE, praised the exchange for its significance and influence in the industry, as its initiators could obtain 80 percent of China's total rare earth ore and products each year respectively.
"Our annual export quota takes up 79 percent of the country's total, illustrating the importance of the exchange," Zhang said.
China is world's biggest producer of rare earths and accounts for more than 90 percent of the world's supply.
Though, its efforts to regulate the trade suffered a major set back in August when WTO ruled that China's export duties, quotas, and administration of rare earths, tungsten and molybdenum products were inconsistent with WTO rules and China's Accession Protocol.
The ruling followed petitions from the European Union, Japan and the United States challenging China's measures on exports of rare earths.
They alleged that the restriction had limited other countries' access to the minerals and has given China an unfair advantage over other producers.
China has maintained that its measures were aimed at curbing environmental degradation and protect resources.
Rare earths, a class of 17 mineral elements, are some of the most sought after metals due to their vital role in manufacturing of high-tech products ranging from smart-phones and wind turbines to electric car batteries and missiles.
