BEIJING, Jan. 28 -- China's six major rare earth groups will complete substantial integration of small mines and 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 controls on 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 by problems including illegal mining, smuggling and a lack of competitiveness due to weak research and development.

To consolidate the industry, China approved a plan in January 2014 to encourage the six rare earth companies to take the lead in integrating regional resources to improve industrial concentration.