The boom of China's rare earths mining may pave the way for new taxes and regulations that could increase the world market prices of the industry's products.

China, which holds 90% of the world market, is considering introducing new taxes and taxes for rare earth minerals later this year. This move could push world market prices further up, according to Bloomberg.

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Several companies including iPod manufacturer Apple Inc, hybrid-electric vehicle firm Toyota Motor Corp, and Tomahawk missile maker Raytheon Co use rare earth elements to create their products.

Chen Huan, a Beijing Antaike Information Development Co rare earth analyst, explained that the increase in market prices may create opportunities for overseas companies to enter the realm of rare earths mining.

In March, the World Trade Organization ruled that China had broken global trade rules by implementing quotas, duties, and other export restrictions on rare earth minerals. Worldwide supply of rare earths plunged after the Asian country cut its exports beginning 2010.

Based on a May 21 article published by China Daily, the country will introduce value tax on rare earth producers. It will also begin requiring certificates of environmental compliance in order to export the products.

According to Euro Pacific Canada Inc analyst Luisa Moreno, customers are now going back to the market as the global stocks go down, and this is driving prices up. Neodymium oxide, a substance used in creating magnets for headphones and wind turbines, saw its price rise 26% this year up to May 29, based on data from Shanghai Steelhome Information.

Around 18 firms are looking to start their own rare earths projects outside of China by the end of this decade. Based on Bloomberg calculations, the combined costs of the all these projects reach $12 billion.

Four years ago, China launched a campaign that aimed to shut down unregulated mines to limit the production of rare earth. This industry creates waste gas, deadly fluorine and cancer-causing wastewater.

Greenland Minerals and Energy Ltd executive director John Mair said China does not want the world market prices to go down because they are currently expecting the biggest cost structure peaks. Mair, whose company aims to start rare earth production in Greenland, also said they are expecting mines to become diversified on a global scale.