The Ministry of Industry and Information Technology and Ministry of Civil Affairs have approved the establishment of an industry association for the rare earths industry, which will include up to 90 major domestic metal companies, people close to the matter say.

The organization's establishment is in preliminary stages and will “very likely” be set up in May, said Wang Caifeng, a former official with the Ministry of Industry and Information Technology who is now overseeing the association's establishment.

A report says heads of major metal companies will take turns as president of the association. Zhou Bingli, chairman of Inner Mongolia Baotou Steel Rare-Earth (Group) is likely to take the post first. The chairman of China Minmetals Corporation is also a candidate.

China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.