SHANGHAI, Apr. 27 -- According to a report from the 21st Century Business Herald, CHALCO and Jiangxi Rare Earth And Rare Metals Tungsten Group (JXTC) will set up a joint venture, with initial registered capital of RMB 300 million. CHALCO will own 51% of stake, while JXTC will own the remaining 49%. The two sides will jointly construct a nickel and cobalt new material project with the capacity of 40 kt/yr, with total investment of approximately RMB 1.8 billion. The new project will mainly produce ultra-fine high-purity nickel and cobalt metal powder, electro-deposited nickel plate, spherical nickel compounds, and other products after coming online.

This means CHALCO and JXTC have taken substantive steps for their strategic cooperation. Industry insiders believe forming a JV is the first step CHALCO takes to acquire JXTC, and CHALCO will compete with China Minmetals in tungsten mines in Jiangxi province at that time.

Previously, the People's Government of Jiangxi Province has signed a strategic cooperation framework agreement with CHALCO in Beijing on March 13th. According to the agreement, CHALCO will invest in industries with high technology and strong competitiveness in Jiangxi province through capital increase and project cooperation in order to finally take a controlling stake in JXTC, and then build a rare earth metals production base in Jiangxi province.

(Edited by SMM)