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What: Shares of rare-earth miner Molycorp
So what: The ministry has ordered for tighter controls over the industry in the name of "sustainable and healthy development." Since China produces 97% of the world's rare earth metals with only 30% of known reserves, any action by the Chinese government has effects that ripple throughout the sector. Molycorp's stock price has been a roller coaster lately after yesterday's and last week's respective plunges; today's bounce provides a little relief for rare-earth pricing fears.
Now what: China's move will limit rare-earth mineral supply, which in turn pushes prices higher to the benefit of companies such as Molycorp and Avalon Rare Metals
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