Molycorp (NYSE:MCP), Rare Element, (AMEX:REE), Shen Zhou Mining & Resources (AMEX:SHZ) Soar on China's Rare Earths Policy

Shares of companies with exposure to rare earths continue to soar on the news China will continue to cut back on exports in the sector. Traders have focused on non-Chinese companies like Molycorp (NYSE:MCP) and Rare Element Resources Ltd., (AMEX:REE), but Chinese companies like Shen Zhou Mining & Resources (AMEX:SHZ) have also partaken in the surge.

The reason for Molycorp and Rare Element Resources share prices soaring are expectations they'll ramp up production and increase revenue and profits.

For Shen Zhou Mining & Resources, its more the guidance they've given for 2011, which estimates revenue to increase by 164 percent for the year, reaching about $38 million. Net income is projected to come in at $11 million.

Shen Zhou is also seeking to expand its product offerings beyond nonferrous metal, as they're looking to acquire assets in other segments.

Nonferrous metals and fluorite are expected to experience strong organic growth in 2011, according to Shen Zhou's CEO.

Rare Element was trading at $14.58, gaining $1.64, or 12.67 percent, as of 2:50 PM EST. Molycorp was trading at 49.50, up $3.32, or 7.19 percent. Shen Zhou Mining & Resources soared to $8.05, up $2.55, or 46.36 percent.