"We expect to have finished processing all applications by the end of May and complete all payments by August, " explains the governor of Diyarbakir, Efkan Ala.

BBC: Some say the compensation payments do not go far enough

Controlling the supply of rare earths means that China can also control their processing and use in finished goods, which would fit a broader effort to drive its manufacturers from low- to high-value goods.

ECONOMIST: Rare earths

It allows certain specified goods to be imported for processing or incorporation into finished products at the rate of Customs duty that would be applicable to the finished product, that is, zero, instead of the rate for the imported goods.

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