Metals News
Establishment of Ganzhou Rare Earth Group Indicates “4+1” Framework on China’s Rare Earth Industry Restructuring Has Taken Shape
smm insight
Apr 8,2013

SHANGHAI, Apr. 8 (SMM) – Jiangxi Ganzhou Rare Earth Group was established on March 30. Zhang Anwen, Deputy Secretary General of the Chinese Society of Rare Earths (CSRE), said the establishment of Jiangxi Ganzhou Rare Earth Group marks the formation of “4+1” framework on China’s rare earth industry restructuring.

The “4+1” framework involves Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech (hereinafter referred to as Baotou Steel Rare-Earth), Aluminum Corporation of China (Chalco), China Minmetals Corporation, Rising Nonferrous Metals Share and Ganzhou Rare Earth Group.

Jiangxi Ganzhou Rare Earth Group is the parent company of Ganzhou Rare Earth Mineral Industry and is now the only owner of rare earth mining rights in Ganzhou. Namely, it owns all of the 44 rare earth mining rights in Jiangxi. The group will merge rare earth smelting & separating enterprises and application enterprises in Ganzhou, enabling it to have access to 70-80% of rare earth mining and smelting capacity in Ganzhou. It plans to produce 40,000 to 60,000 mt of rare earth, compared with China’s rare earth mining indicator of 90,000 mt for 2012.     

Back in May 2011, the State Council issued the Opinions on Promoting Sustainable and Healthy Development of Rare Earth Industry. According to the opinions, rare earth industry shall be dominated by large firms, and the industry concentration of top three ion-type rare earth enterprises must exceed 80%. 

China Minmetals Corporation, Chalco, China Non-ferrous Metal Industry’s Foreign Engineering and Construction (NFC), Jiangxi Copper, Rising Nonferrous Metals Share, Xiamen Tungsten and Ganzhou Rare Earth Mineral Industry all tried to join in the merging and restructuring of rare earth industry. 

According to Mr. Zhang, Chalco has merged rare earth enterprises in Jiangsu. Rising Nonferrous Metals Share has been in charge of M&As of rare earth companies in Guangdong. Ganzhou Rare Earth Group will be responsible for rare earth industry integration in Ganzhou. China Minmetals Corporation intends to join in restructuring of Guangdong’s rare earth industry following its acquisition of some rare earth enterprises in Jiangxi, Guangxi and Hunan. Baotou Steel Rare-Earth will be responsible for M&As in rare earth industry in north China. 

Rare earth industry restructuring in south and north China is led by Ganzhou Rare Earth Group and Baotou Steel Rare-Earth, respectively.

Light rare earth in north China is concentrated in Baotou in Inner Mongolia, Liangshan in Sichuan, Weishanhu in Shandong, while heavy rare earth in south China is centered on Jiangxi’s Ganzhou. Baotou Rare Earth, is actively seeking alliance with enterprises in Sichuan and Shandong.

Baiyun Erbo Rare Earth Mine is China’s biggest rare earth mine, containing 87.7% of rare earth. As Baotou Steel Rare-Earth’s rare earth industry integration accelerates, it will have access to more rare earth.

Heavy ion-type rare earth in Jiangxi accounts for roughly 40% of China’s total ion-type rare earth reserves, most of which is located in Ganzhou. All rare earth mining rights in Ganzhou are exclusively owned by Ganzhou Rare Earth Group.

Rising Nonferrous Metals Share also owns large quantities of rare earth. In comparison, China Minmetals Corporation and Chalco have less rare earth. (Edited by SMM)


Ganzhou Rare Earth Group
China's rare earth industry restructuring
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