China Minmetals Enters Rare Earth Business     

On July 25th China Minmetals Non-Ferrous Metals Co., Ltd., under China Minmetals Corporation, signed a framework agreement with Jiangxi Ganzhou Municipal Government and Ganzhou Rare Earth Mining Co., Ltd. on promoting the development of the rare earth sector in Ganzhou of Jiangxi province.
   According to the agreement, China Minmetals Non-Ferrous Metals Co., Ltd. will partner with Ganxian Hongjin Rare Earth Co., Ltd. and Dingnan Dahua New Material Resources Co., Ltd. to form a joint venture Minmetals Ganzhou Rare Earth Co., Ltd. to process rare earth resources in Ganzhou. Minmetals Ganzhou Rare Earth plans to invest RMB2.0 billion to build a rare earth functional materials and applied products project, and has set an annual sales target of RMB10 billion in the next 5 years and listing the domestic stock market. Ganzhou Municipal Government will provide stable rare earth ores and grant partial mining right before the listing of the proposed company.
   Ganzhou, located in the southeastern China, has rich and good-quality ionic type rare earth resources. The total capacity of ionic type rare earth separation in the area accounts for 60% of the national total now, with the features of convenient mining and regular distribution. Ganzhou has become the biggest rare earth metal production base in China.
   According to Zhou Zhongshu, President of China Minmetals Corporation and Chairman of China Minmetals Non-Ferrous Metals, the move can not only promote the development of the rare earth sector in Ganzhou but also facilitate the reformation of the entire rare earth sector in China.
   China Minmetals Non-Ferrous Metals is a leading company in the non-ferrous metal industry of China. China Minmetals hold the 84.56% equity in the company.
   China Minmetals, established in 1950, is engaged in the development, production, trade and service of metals and minerals and also undertakes financing, homebuilding and logistics.
   Inner Mongolia Baotou Steel Rare Earth High-Tech Co., Ltd. located in the northwestern China once announced to regroup the rare earth sector in China to protect rare earth resources in China and control the exports of rare earth. Participants included an enterprise in Jiangxi. (CCR2008 No. 11) The involvement of China Minmetals will undoubtedly bring a new opportunity to the reformation of the rare earth sector in China.