Feb 15 (Reuters) -Â China is likely to create a rare earth industry association in May to help its miners obtain more pricing power in the global market, official media reported on Tuesday.
The association, closer to a formal launch after approvals from government agencies including the Ministry of Information and Technology, will serve as price negotiator and as a facilitator in trade disputes for China's rare earth export sector.
China, which produces about 97 percent of the global supply of the metals, cut its export quotas by 35 percent for the first half of 2011 versus a year earlier, saying it wanted to conserve reserves and protect the environment.
The International Business Daily said the new association will have 93 members, covering most of the country's miners and manufacturers of the metals, widely used for wind turbines, hybrid cars and a range of other high-tech products.
Once it starts operating, the association will lead a new round of industry restructuring and also establish a rare earth reserve system, it added, without giving further details.
China is also expected to release new standards for the rare earth mining industry in June or July, aimed at cutting pollution created in the extraction and production process, the paper said.
Last week, China said it would create a "state planning" zone covering the country's biggest rare earth mines to cut production of the valuable minerals.
