China formed a rare-earths giant by merging some key producers, creating a behemoth that will strengthen its control over the global industry it has dominated for decades.
The group is formed through merging rare-earth units of government-owned companies including China Minmetals Corp., Aluminum Corp. of China and Ganzhou Rare Earth Group Co., according to a stock exchange filing from China Minmetals Rare Earth Co. The new entity, China Rare-Earths Group, will speed the development of mines in the south, state broadcaster CCTV reported.
The group is formed through merging rare-earth units of government-owned companies including China Minmetals Corp., Aluminum Corp. of China and Ganzhou Rare Earth Group Co., according to a stock exchange filing from China Minmetals Rare Earth Co. The new entity, China Rare-Earths Group, will speed the development of mines in the south, state broadcaster CCTV reported.
The move aims to better allocate resources, realize green development and upgrade deep-processing of the rare-earth sector, according to CCTV. The State-owned Assets Supervision and Administration Commission will hold a 31.21% stake in the new group, while Chinalco, China Minmetals and Ganzhou Rare Earth Group will each own 20.33%, it said.
“This is part of a broader repositioning of Chinese industry to feed the supply chain for the coming years of electrification, and it’s a recognitio ..
China Minmetals Rare Earth surged as much as 8.5% in Shenzhen and Aluminum Corp. of China Ltd. gained more than 5% in Shanghai.
The country’s dominance of the sector has been an increasing concern. The little-known materials were thrust into the spotlight in 2019 when China considered export controls as part of its trade war with the U.S., which relies on the country for 80% of its imports. While ultimately no restrictions were ever implemented, it highlighted the risks of being depende ..
