Guangzhou Daily citing information from Baotou Steel Rare Earth said Inner Mongolia Baotou Steel Rare Earth has constructed six rare earth reserve facilities with a minimum reserve capacity of 5,000 tonnes to 6,000 tonnes.

A Baotou Steel Rare Earth employee said rare earth concentrate and rare earth oxide will be held in these facilities. Baotou Steel Rare Earth plans to accumulate nearly 300,000 tonnes of rare earth concentrate within five years and 80,000 tonnes of rare earth products within two years.

Baotou Iron and Steel Group, the parent of Baotou Steel Rare Earth, will be responsible for management of rare earth resources in Inner Mongolia.

Rare earth reserves across the world total 88 million tonnes of which China owns one-third.

The Chinese Ministry of Commerce is likely to further reduce the export quota of rare earth minerals in 2011.