Dec. 13, 2011 (China Knowledge) - Aluminum Corp of China or Chinalco said a subsidiary, China Rare Metals and Rare Earth Co Ltd has inked a letter of intent with Rhodia SA, a French unit of Belgian group Solvay SA, to expand the global rare earth market.
Pursuant to the agreement, the two sides will cooperate with each other in rare earth supply, technology and market development worldwide.
China Rare Metals and Rare Earth focuses on integrating and developing in Chinese rare earth industry, while Rhodia supports the automotive, lighting and electronics industries with its rare earth-based specialty chemicals, sources reported.
About 95% of the world's rare earth is produced from China, according to statistics.
Chinalco, the parent company of China's largest aluminum producer Aluminum Corp of China Ltd<601600><2600>, is seeking to diversify its business from aluminum to other sectors, including coal, iron ore, rare earth and copper.
In addition, Chinalco has set up a joint venture, namely Chinalco Rio Tinto Exploration Co, with Australian mining giant Rio Tinto for mineral exploration in China.