SHANGHAI, Apr. 2 (SMM) – Ganzhou Rare Earth Group entered operation on March 30, 2013, marking an important step forward in Ganzhou’s intensive development of rare earth industry.
Ganzhou claims title as China’s biggest medium and heavy rare earth production and processing region.
Ganzhou has been making great efforts in integration of rare earth industry in its jurisdiction since December 2010. All rare earth mines in the city were closed for readjustment in May 2011 and construction of standard mines is now underway. .
Ma Rongzhang, Secretary General of the Association of Chin Rare Earth Industry, said Ganzhou Rare Earth Group will step up M&As and improve industry concentration so as to develop itself into a large south China rare earth group.
Ganzhou Rare Earth Group is a large state-owned enterprise in Ganzhou as well as a leading south China rare earth enterprise. As the sole owner of mining rights to rare earth in Ganzhou, the company integrates the entire rare earth industry chain, from mining through smelting, separating, processing, trade, and R&D.
Integration of light rare earth industry in north China has made great strides. At the end of last year, Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech (hereinafter referred to as Baotou Steel Rare-Earth) signed the Framework Agreement on Integration and Reorganization of Rare Earth Upstream Producers with shareholders of twelve rare earth upstream producers in Inner Mongolia. Each of these twelve enterprises has agreed to transfer 51% stakes to Baotou Steel Rare-Earth for free.
Integration of rare earth industry in south China proceeds more slowly compared with north China. That being said, some central state-owned rare earth enterprises and those in key provinces and regions have stepped up M&As. For example, regional groups have been established in Jiangxi and Fujian, improving industry concentration in these provinces. Zhu Hongren, press spokesman of the Ministry of Industry & Information Technology said corresponding departments will give the green light to the establishment of large rare earth groups as appropriate.
Mr. Ma has urged Chinese rare earth enterprises to closely track rare earth development overseas and lay out corresponding schemes. Many foreign companies such as Molycorp and Lynas Corp have been building or expanding rare earth dressing and smelting projects in recent years. He also proposed to relax control on light rare earth exports while protecting medium and heavy rare earth. (Edited by SMM)