China has announced that it will be looking to hold a large scale audit of the country’s domestic rare earth metal produces in an effort to check on any quota breaches being conducted by said companies.

The Chinese Ministry of Industry and Information Technology said on its website on Tuesday that the audit would be held between August 1st and December 31st with the aim of exposing rare metal producers who are breaching existing regulations and continuing to trade illegally in rare earth metals.

The companies that are found to be exceeding quotas or using outdated and hazardous machines will be forced to halt their operations and will face possible revocation of their licences.

The Chinese government has repeatedly stated about the need to regulate rare earth metal production in the wake of their quick depletion and over environmental concerns.