First U.S. Rare-Earth Mining ETF to Trade in N.Y.

The first U.S. exchange-traded fund linked to companies producing rare-earth elements and strategic metals will begin trading in New York tomorrow, according to Harvey Hirsch, a senior vice president at Van Eck Associates Corp., the issuer of the security.

The ETF will track an index that consists of 24 mining companies including Iluka Resources Ltd., the world’s largest zircon producer, and Titanium Metals Corp., Van Eck said in a report. The launch price will be $20, and the ticker for the fund listed on the NYSE Arca stock exchange will be REMX, the New York-based money manager said.

Rare-earth prices have jumped after China, the source of more than 90 percent of worldwide supplies, cut its second-half export quota. The group of 17 metallic elements, such as lanthanum, cerium, neodymium and europium, are used in petroleum refining, fiber-optic transmission, and military radar and missile-guidance systems.

Forty-nine elements in the periodic table are considered strategic metals, including certain rare-earth metals, said Van Eck, which created the first U.S. gold-mining ETF in 2006.

China Rare Earth Holdings Ltd., a manufacturer and wholesaler of rare-earth products traded in Hong Kong, is also in the index.