Chinese rare earth producers merge

December 17, 2014

China’s Baogang Rare Earth Group (BREG), located in the country’s Inner Mongolia Autonomous Region, has announced it will change its name to China North Rare Earth Group Co. Ltd following a merger with five smaller companies.

BREG has secured approval to acquire stakes in Baotou Feida Rare Earth Co., Baotou Jinmeng Rare Earth Co., Baotou Hongtianyu Rare Earth Magnets Co., Wuyuan Runze Rare Earth Co. and Xinyuan Rare Earth Hi-Tech & New Material Co.

According to a statement filed by BREG, the five companies are engaged in the rare earth separation businesses with a combined rare earth processing capacity of 73,500 t per year. “The regrouping drive will help integrate resources and create a favourable environment for domestic companies,” stated Yang Zhanfeng, Dean of Baotou Research Institute of Rare Earths.

BREG claims to have a mine with the world’s largest reserve of rare earth and dominates the Chinese market of light rare earth products.

China is hoping to boost competitiveness in the sector with the merging of rare earth makers into large groups. Other domestic competitors reported to be considering regrouping include Aluminum Corporation of China and Xiamen Tungsten Co. Ltd, two of the country’s six giants in the sector.

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