The Ministry of Land and Resources has sent an investigation team to five southern provinces to check into rare earth sector consolidation there, Guangzhou-based 21st Century Business Herald reported Wednesday.

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The five provinces are Hunan, Jiangxi, Fujian, Guangdong and Guangxi.

The five provinces are asked by the ministry to work together in a bid to crack down on illegal exploitation and smuggling of rare earths, as well as control the total exploitation amount, the report said.

The ministry and the provinces also discussed the establishment of a national rare earths reserve system, according to the report.

Rare earth resources in South China are scattered, which makes it difficult for the central government to regulate over-exploitation. An expert from the China Society of Rare Earths said high demand for these valuable resources makes an attractive price for mining companies.