SHANGHAI, Apr. 7 (SMM) – Ganzhou Rare Earth Group was founded recently, and that means the core industrial group in major domestic rare earth producing region came online, and an important step of domestic large rare earth leading company construction.
As high-tech industries develop rapidly in recent years, global demand for rare earth and consumption have been growing fast. China’s rare earth reserves accounts for 30% of the total volume in the world, and the country supplies 90% rare earth to the world. But the rare earth industry in China has been dispersed, disordered and polluting.
China’s rare earth industry needs to inspect exploration orders and raise industry consolidation ratio to develop healthily. China has taken effective measures recent years to the rare earth industry. On May 10th, 2010, China released the Proposals Regarding Promoting Sustainable and Healthy Development of Rare Earth Industry, pointing out China should form a rare earth industry led by large groups, and the consolidation rate of the top 3 enterprises in rare earth industry in south China should reach 80%.
The Suggestions Regarding Accelerating M & A at Major Industries was released on January 22nd, 2013, ordering China should push resources consolidation, and reduce the number of rare earth miners, smelters and separators, raise industrial consolidation rate and form the industry led by large enterprises.
Baotou and Ganzhou are major rare earth producing regions in north and south China, with rare earth output value accounting for 2/3 of total domestic rare earth output value.
Ganzhou is a major rare earth producing region in south China, and has developed rare earth mining and processing for over four decades. Of the 6 existing rare earth mining permits, 44 are in Ganzhou.
The Ganzhou Rare Earth Group is a large enterprise engaging in mining, smelting, separating, deep-processing and utilization, trade and researching, and the only group owning rare earth mining permit in Ganzhou.
Domestic rare earth market is under merger and acquisition, covering Minmetals, and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech, Ganzhou Rare Earth and Xiamen Tungsten.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech is now constructing China Northern Rare Earth Group jointly with Gansu Rare Earth Group, acquiring backbone enterprises in Sichuan and Shandong province. Ganzhou Rare Earth and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech are the two most important rare earth enterprises in south and north China, which will help realize the target of constructing national large rare earth enterprises. (Edited by SMM)