China's six major rare earth groups will complete substantial integration of small minesand smelting companies by the end of 2015, an official said on Wednesday.

Su Bo, vice minister of industry and information technology, said as China has removed controlson rare earth export quotas, export companies will vie for market share amid hostile competition,which makes the fostering of an orderly market an arduous task.

China is the world's largest rare earth producer and exporter, but the industry is beset byproblems including illegal mining, smuggling and a lack of competitiveness due to weak researchand development.

To consolidate the industry, China approved a plan in January 2014 to encourage the six rareearth companies to take the lead in integrating regional resources to improve industrialconcentration.