Rampant smuggling and weak demand have led to a large decrease in the amount of rare earths exported from China through legal channels.

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China, the supplier of 90 percent of the world's rare earths, cut mining rights for the materials by about half to 65 nationwide to help the industry consolidate and create bigger producers.

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Eight major rare-earth mineral production bases in Guangdong Province signed framework agreements with Guangdong Rare Earth Industry Group on Saturday