Singapore Governments listed Global Logistic Properties (GLP) has made a strong comeback in its third quarter from a loss last year to posting a net profit of US$82.1 million ($105.2 million).

The Company owns warehouses and strategic logistic assets mostly in China and Japan posted a US$305.4 million loss in the corresponding quarter of last year.

Revenue for the three months ended Dec 31 last year rose 12.9 per cent to US$125.2 million due to the completion and stabilization of GLP’s infrastructure in China. GLP chief executive Ming Z Mei, said: “We enjoyed strong customer demand for properties. In China, we saw demand for an average of 103,300 sq m of new and expansion-leased area per month for the first nine months of this financial year.”

For the first nine months, GLP registered a net profit of US$673.6 million, compared to a loss of US$291.5 million in the year-ago period. Revenue increased by 13.8 per cent to US$349.4 million in the nine months, primarily driven by the strengthening of the Japanese yen against the US dollar.

The company listed on the Singapore Exchange last October, said it continued to see strong demand in China and enjoyed a stable portfolio in Japan.

According to GLP deputy chairman Jeffrey Schwartz, there is a scarcity of modern logistics facilities in Japan – especially in prime locations.

“GLP is in a good position to satisfy this demand from our portfolio as Japanese manufacturers outsource their logistics function in order to run their core operations more efficiently. 2011 will be an exciting year, as the supply and demand dynamics in Japan looks set to make development attractive,” he said.

China plans to streamline Rare Earth mining industry within 5 yrs

China will strive to streamline its Rare Earth industry within 5 yrs, said Chinese Premier Wen Jiabao at an executive meeting of the State Council, China’s Cabinet, Wednesday.
A document released after the meeting said China should accelerate industrial upgrading and technological innovation to protect the environment and save resources.

The industry should maintain rational production and inventory control, make better use of domestic and overseas markets and resources, and have active international cooperation for a healthy and sustainable development.

For that purpose, the Nation would establish and improve the supervision framework of laws and rules on the industry, impose stricter mining policies to protect the environment and resources and protection standards for the environment, and make reasonable plans for mining and exports.

Meanwhile, authorities would carry out special campaigns to crack down on illegal mining activities to maintain order in production, further consolidate the industry and promote technological innovation, said the document.

At the meeting, clear demarcation was set out for responsibilities in relevant areas and government agencies, according to the document.

The Ministry of Land and Resources announced last month the establishment of 11 State-managed Rare Earth mining zones in Ganzhou Prefecture, east China’s Jiangxi Province, an area rich in ion-absorbed-type Rare Earth, to protect resources and the environment.

The 11 mining zones have a combined area of 2,500 sq kilometers, with Rare Earth reserves estimated at 760,000 tonnes.

The ministry also designated 2 State-managed iron mining zones in Panzhihua, western Sichuan Province. The zones have an area of 460 sq kilometers.

China, the World’s largest Rare Earth producer and exporter, provides more than 90% of the Global Rare Earth demand, though its reserves account for 33% of the World’s total supply.

The Ministry of Commerce said last month that China exported 35,000 tonnes of rare earth from January to November last year, up 14.5% from a year earlier.

Rare Earth elements are crucial for the production of components used in a variety of high-tech products such as consumer electronics, but their mining is known to be destructive to forests, soil and farmland. The waste released after mining also damages the environment.—Paul A. Ebeling, Jnr. www.livetradingnews.com