Shenghe Resources to raise 1.368 billion yuan to expand capacity

SHANGHAI, Jun 10 (SMM) – Shenghe Resources announced plans to raise funds through non-public issuance of A-shares of 106 million shares, totalling 1.368 billion yuan. The net amount of funds raised after deducting the issuance costs will be all used in the following projects.

The investment project will realise the expansion of the company scale through smart transformation of the existing production line and construction of new rare earth metal processing production line, and also focus on the development of new processes, technologies and materials through the construction of the R&D centre. The project also complies with industrial policy plans.

After years of development, Shenghe Resources has formed a complete industry chain of rare earth mining, smelting separation and application processing. The company has advantages in rare earth smelting and separation, which is one of its core businesses.

Shenghe Resoruces has achieved rare earth separation capacity of approximately 15,000 mt/year as of the end of 2020. The subsidiary Shenghe Rare Earth mainly processes light rare earth ore, which is an important rare earth separation enterprise in Sichuan Province. Quannan New Resources Rare Earth mainly processes ion-type rare earth ore in south China, and Bulai Terbium engages in rare earth waste recycling business. Shenghe Resources's plans for production and sales of main rare earth oxides (key elements) products from 2021 to 2022 are as follows.

At present, downstream customers of Shenghe Resources include Beijing Zhongke Sanhuan High-tech Co., Ltd., Jiangxi Jinli Permanent Magnet Technology Co., Ltd., Ningbo Yunsheng Co., Ltd., Magquenc (Tianjin) Co., Ltd., Shin-Etsu Chemical Industry Co., Ltd., Many domestic and foreign high-quality customer resources such as Germany VAC.