China's Ministry of Finance and the State Administration of Taxation has issued a statement addressing its intention to impose a tax on rare earth minerals beginning on April 1. A tax of 60 RMB (approximately $9.10) per ton will be set for light rare earths, and a tax of 30 RMB (approximately $4.55) per ton will be set for medium and heavy rare earths. The tax will increase annual production costs for Chinese producers of rare earth minerals. Prices for rare earth minerals have soared in recent months due to a supply shortage resulting from the hoarding of these materials. The Chinese government will use the tax to support research on rare-earth processing and set up environmental compensation funds or to build rare earth reserves.