Recently, Shenghe Resources issued a foreign investment announcement, pointing out that the company's holding subsidiary Ganzhou Chenguang rare Earth New Materials Co., Ltd. (referred to as "Chenguang rare Earth") recently signed a "capital contribution agreement" with China rare Earth (Jiangsu) rare Earth Co., Ltd. (referred to as "China rare Earth (Jiangsu) Co., Ltd.") and Jiangsu Poly Nonferrous Metals Co., Ltd. (referred to as Jiangsu Poly). Jointly funded the establishment of Shenghe Resources (Jiangsu) rare Earth Co., Ltd. (tentative name, the company name approved by the government market management department shall prevail). Chenguang rare earths plan to contribute 112.5 million yuan to subscribe for a 75 per cent stake.
It is reported that China rare Earth (Jiangsu) rare Earth Co., Ltd. is a holding subsidiary of China rare Earth Co., Ltd., one of the six major rare earth groups in the country. It has operated rare earth related industries in Jiangsu for many years. It has four rare earth smelting plants in Changshu, Changzhou, Yixing and Funing, mainly engaged in rare earth smelting separation and rare earth new materials industry research and development, production and sales business. The company's assets are about 1.225 billion yuan.
The announcement points out that after the signing of this agreement, China rare Earth (Jiangsu) rare Earth Co., Ltd. and the joint venture company shall apply for remote upgrading and capacity transfer to the competent department of the industry. the rare earth production capacity of China rare Earth (Funing) New rare Earth Materials Co., Ltd., a wholly-owned subsidiary of China rare Earth (Jiangsu) rare Earth Co., Ltd., will be transferred to the joint venture company in accordance with the law to meet the capacity of no less than 5000 tons per year. Shenghe Resources believes that this foreign investment will help to deepen and strengthen the contact and cooperation between the company and the large rare earth groups, and after the joint venture company's rare earth smelting separation project is completed and put into production, the company's rare earth smelting separation capacity will be greatly improved. it will help to increase the company's production capacity and enhance the company's market competitiveness.
Earlier, Shenghe Resources said in an investor research report that the prices of major rare earth products were affected by factors such as the structure of supply and demand, and rare earths began to rise in the second half of last year. In the future, with the rapid development of new energy vehicles, wind power, frequency conversion air conditioners, robots and other industries, the demand side is expected to grow rapidly, which will form a strong support for the prices of major rare earth products. The three key documents required for the mining licence for its Kovane Bay project, including the environmental impact assessment (EIA), the social impact assessment (SIA) and the maritime safety study, have been accepted by the Government and a public hearing is currently under way, which is expected to end in mid-March this year.
Today, Shenghe Resources opened up by the limit of 11.74 yuan per share, and rare earth permanent magnet concept stocks opened stronger. On the 15th, the Ministry of Industry and Information Technology publicly solicited opinions on the rare Earth Management regulations (draft for soliciting opinions), a total of 29 regulations, clarifying the division of rare earth management responsibilities, the rare earth mining and smelting separation investment project approval system, the rare earth mining and smelting separation total index management system, and so on. It also emphasizes strengthening the management of the whole industry chain of rare earths and strengthening supervision and management.
The regulations emphasize source control and specify the requirements of project approval and total index management. Rare earth mining enterprises and rare earth smelting separation enterprises shall carry out mining or smelting separation in accordance with the target use plan determined by the competent department. The Ministry of Industry and Information Technology specifically pointed out that rare earths are important strategic resources as well as non-renewable resources. China is a large country of rare earth resources, which plays an important role in the field of rare earth production and utilization. Speeding up the formulation of regulations and clarifying the systems of rare earth management in law are conducive to safeguarding our national interests and the security of strategic resources industry.
