Chinese rare earth giant forms international trading company to deepen integration


rare earth Photo:VCG

China’s new rare earth giant, China Rare Earth Group Co Ltd, recently announced the establishment of an international trading company as part of a major initiative to accelerate the deep integration of trading assets within the group into the aim of promoting industrial coordination and commercial efficiency.

The company will focus on strengthening business and operational integration within the group, strengthen in-depth cooperation in the rare earth sector to become a world-class business enterprise, according to a statement posted on the group’s WeChat account.

According to Chinese business information platform Tianyancha, the trading company was registered on June 28 in Ganzhou, east China’s Jiangxi Province, with a registered capital of 1 billion yuan ($149 million). It is 100% controlled by China Rare Earth Group Co.

China Rare Earth Group Co was officially established in December 2021 through the merger of several key producers of the important mineral resources, involving China Minmetals Corp, Aluminum Corp of China and Ganzhou Rare Earth Group Co.

When the industrial conglomerate was established, it announced that it would focus on technology research and development, exploration, downstream application and trading of rare earths.

Rare earths, nicknamed “industrial gold”, are a group of 17 chemical elements used in a wide range of products from high-tech consumer electronics to military equipment.

China is the world leader in the rare earth sector in terms of production and refining technologies. According to the US Geological Survey, China’s rare earth reserves led the world in 2020 with 44 million tons, or about 37% of global reserves. The country accounted for around 60% of global rare earth production in 2020.

In April, the Ministry of Industry and Information Technology said China will further promote the expansion of the application of rare-earth permanent magnet materials, aiming to improve the development rare-earth permanent magnet materials and high-end application industry.

According to data from the General Administration of Customs, China exported 21,970 tons of minerals in the first five months of 2022, up 10.9 percent year on year.

world times


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