State-owned enterprise and private mining group join forces to increase flexibility.
State-owned China Rare Earth Group has established a joint venture with the mining company Ji’nan Yuxiao Group and a subsidiary of Shenghe Resources. The new company has been capitalized with approximately $120 million, according to the Global Times. It will focus on processing rare earth materials and manufacturing and marketing products such as rare earth metal alloys.
The location of the production facilities, planned processing capacity, and timeline for the start of operations have not yet been disclosed.
According to the newspaper, China Rare Earth Group contributes access to an extensive portfolio of rare earth mines as well as significant expertise in rare earth processing. Ji’nan Yuxiao Group brings experience in international mining, mineral processing, and logistics, while Shenghe Resources contributes its long-standing capabilities in the extraction, processing, and commercialization of rare earth materials.
Industry analysts quoted by the Global Times believe the partnership will give the companies greater operational flexibility while strengthening China’s domestic rare earth supply chain. Increased utilization of domestic resources is also expected to reduce reliance on overseas mining assets and enhance the country’s long-term raw material security.
Read more: how China streamlined its rare earth industry
Photo: Sargis Zubov via Canva
