China Nonferrous Metal Strengthens Rare Earth Business     

China Nonferrous Metal Co., Ltd. (SZ: 000758) announced on August 2nd that the company will form a joint venture named China Nonferrous Metal South Rare Earth (Xinfeng) Co., Ltd., partnering with Jiangsu Zhuoqun Nanometer Rare Earth Co., Ltd., Changshu Shengchang Rare Earth Materials Co., Ltd. and Xinfeng County Fengyuan Development Co., Ltd. (Fengyuan Development) The proposed joint venture will build a 7 000 t/a rare earth separation project in Xinfeng county, Shaoguan of Guangdong province, with a total investment of RMB473 million.
   Guangdong Zhujiang Rare Earth Co., Ltd. controlled by China Nonferrous Metal is the biggest rare earth separation and processing firms in southern China, with a rare earth separation capacity of 3 000 t/a. The company, currently located in downtown of Guangzhou, plans to relocate at Xinfeng county due to environmental protection, safety, cost and resource. Xinfeng County has rich medium and heavy rare earth resources. The joint venture can have convenient access of rare earth raw material and make use of the relocation of Guangdong Zhujiang Rare Earth to expand production.
   The joint venture has a registered capital of RMB300 million. China Nonferrous Metal will subscribe RMB228 million, holding 76% equity; Zhuoqun Nanometer Rare Earth Co., Ltd. will subscribe RMB30 million, holding 10% equity; Shengchang Rare Earth Materials will subscribe RMB 30 million, holding 10% equity and Fengyuan Development  will subscribe RMB12 million, holding 4% equity. The new jv engages in the prospecting, recovery, processing and sales of rare earth minerals and the production of rare earth metals, rare earth oxides and rare earth compounds.
   According to China Nonferrous Metal, China Nonferrous Metal South Rare Earth (Xinfeng) will become the biggest rare earth separation enterprise in China and help consolidate the leading position in the rare earth sector for China Nonferrous Metal.
   China Minmetals Corporation launched similar actions in Jiangxi province this July. (CCR2008 No. 23)