Baotou's policy on supporting and subsidizing the rare earth industry has recently been published on the comprehensive service platform for benefiting enterprises and people, with a total of five points.

1. Fixed asset investment reward and subsidy policy: Major projects at leading enterprises with fixed investment of 1 billion yuan ($148.1 million) and foreign investment of $150 million and above, or annual tax of 50 million yuan or more, will be given more preferential policy support by adopting one policy for one enterprise.

2. Reward and subsidy policy for raw material supply: Enterprises in Baotou that have purchased the amount of lanthanum and cerium equivalent to Rare Earth Oxide 100 percent of the China North Rare Earth Hi-tech Co exceeding 2,000 metric tons and 4,000 tons – which were directly used for processing and production to form follow-up products and realize product sales – will be given 500,000 yuan and 1 million yuan, respectively.

3. R&D and application of new technology award and subsidy policy: Enterprises and research institutes that have obtained major national science and technology special projects will be subsidized with an amount equal to 25 percent of the national funding for the projects (up to 5 million yuan), and subsidized with an amount equal to 20 percent of the national funding amount for enterprises and research institutes undertaking key national R&D projects (up to 3 million yuan).

4. Financial support and reward policy: All rare earth new materials and application enterprises that are registered, produced, and sold in Baotou and pay taxes in accordance with the law will be given discounted interest at 80 percent of the loan market quotation rate for the same period for working capital loans required for local projects.

5. Fiscal and tax incentives and subsidy policies: For newly-built projects with a completed fixed asset investment of at least 30 million yuan, from the first tax year after the commissioning, the first three years will be rewarded according to 100 percent of its contribution to the local finance, while the next two years will be 50 percent. For enterprises with a fixed investment of more than 20 million yuan and an annual main business income of more than 60 million yuan, the personal income tax paid by high-level talent will be rewarded to the enterprise at a rate of 100 percent of the talent’s contribution to local finance.