BEIJING -- China Minmetals Rare Earth Co Ltd, a leading miner in the business, posted a drasticdecline in net profits in the first quarter of 2014 due to low rare earth prices.
The company made 1.6 million yuan ($261,341) in net profits from the start of January to the endof March, diving by 94.1 percent year on year, according to a financial report released onMonday.
The miner's business revenue also declined by 98.5 percent to reach 3.3 million yuan in the firstthree months.
The financial results came after a 20.5-percent decline in net profits and a 57.6-percent drop inbusiness revenue in 2013.
Along with weakened profitability, the company's rare earth stockpiles also surged by 167.8percent in 2013.
"The grim outlook of the global economy and sluggish domestic demands hammered rare earthprices and weighed on mining companies," said the report.
The company's shares tumbled by 2.8 percent in Monday's trading.