A new state-owned rare minerals company, China Rare Earth, was founded as a result of the merger of three mining companies: Aluminum Corporation of China (Chinalco), China Minmetals and the Ganzhou Rare Minerals Group, reports the official Xinhua news agency.
In addition, the merger includes two research companies: the Grinm group and the Iron and Steel Research Institute.
The new company will operate under the supervision of the State Property Administration and Supervision Commission, which depends on the State (Executive) Council.
According to the Global Times newspaper, the new entity will control about 70% of the Asian country’s heavy rare minerals, which are crucial in the manufacture of high-tech consumer goods.
The deputy director of the China Rare Minerals Industry Association, Chen Zhanheng, told the Global Times that “with the founding of this company, the sector will go from a dispersed and small-scale model to a more systematic and comprehensive one ”.
China’s Industry Minister Xiao Yaqing commented last March that “rare materials from China are not being sold at the price of ‘rare materials’ but of ‘materials’ to dry”, Hinting at the intention of the authorities to stabilize the market and regulate the price of these resources, now subject to competition between the main companies in the sector in China.
Wu Chenhui, an analyst of the mining sector quoted by the Global Times, assured that “China will not use the rare mineral supply as a diplomatic weapon unless necessary. “
According to the United States Geological Survey, China produced 58% of the world’s rare minerals in 2020.
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