Companies specializing in mining rare earth minerals had quite a fine day on U.S. stock exchanges Thursday. One of the beneficiaries was Ramaco Resources (METC 11.74%), which saw its share price leap nearly 12% higher on the back of a significant development across the Pacific Ocean. The S&P 500 (^GSPC -0.28%) didn't do nearly as well, as it fell by 0.3% that trading session.
Tightening the screws
On Thursday, China's Commerce Ministry tightened its control and oversight of rare earths exported from that country. It announced that shipments of certain rare earths will be required to obtain an export license from the government.
Image source: Getty Images.
The move is an attempt to further restrict these rather limited resources from landing in the hands of companies that might use them for strategic goods, such as weapons and electronics.
This is the latest development in the China-U.S. trade standoff, which has been heightened with President Trump's imposition of tariffs on various goods coming from the sprawling Asian nation.
A most valuable asset now
As long as these new restrictions remain in place, Ramaco stands to benefit handsomely. The company owns and operates Brook Mine in Wyoming, which it doesn't hesitate to mention is the first new rare earth element in the U.S. to be operational in 70 years.
