Chinalco to Invest 10 Bln Yuan in Rare Earth Sector
By JXCN.CN Update 2010-9-28 10:37:16
September 27, CRIENGLISH.com - The Aluminum Corporation of China (Chinalco), the country's top mining company, said Monday it has signed an agreement to assume a major stake in the Jiangxi Rare Earth and Rare Metals Tungsten Group (JXTC) for 10 billion yuan (1.5 billion U.S. dollars).
Chinalco, keen to become one of the world's leading rare earth companies, will help JXTC develop rare earth resources in the next three to five years, according to the agreement, which was signed Sunday at the Expo Central China 2010.
The Nanchang-based JXTC is China's largest tungsten producer and maintains rare earth resource deposits in Jiangxi Province.
The agreement came after China's announcement early this month that it would encourage mergers and acquisitions in the rare earth sector to quicken industry consolidation. According to media reports, the government planned to cut the number of rare earth firms from the current 90 to 20 by 2015.
China is the world's largest rare earth producer, supplying more than 90 percent of the global demand.
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Chinalco to invest $1.5 bln in rare earth
Sept 27 (Reuters) - Aluminum Corp of China (Chinalco), the country's top aluminium producer which is expanding to other metals, will take a majority stake in Jiangxi Rare Earth and Rare Metals Tungsten Group.
State-owned Chinalco, keen to invest in rare earth, would use not less than 10 billion yuan ($1.5 billion) to help the Jiangxi firm develop rare earth resource in the next 3-5 years, Chinalco said in a statement on the company website on Monday. (www.chalco.com.cn)
In March this year, Chinalco said it would support the development of Jiangxi Rare Earth, owned by the provincial government. [ID:nSGE62N08L]
The Jiangxi firm is one of China's major tungsten producers and holds rare earth resource in the southern province of Jiangxi.
China is the world's biggest supplier of tungsten and rare earth.
Chinalco recently set up a subsidiary China Rare Metals Rare Earth Company Ltd and aims to be a leader in that sector, according to the same statement.
The company is the parent of Chalco (2600.HK: Quote) (601600.SS: Quote) ($1=6.7 yuan)
