Group eyes country’s rare earth industry | Latest Updates

rare earth oxides. (clockwise from top center) Praseodium, Cerium, Lanthanum, Neodymium, Samarium, Gadolinium. (Photo provided to China Daily)

Building momentum for business as critical elements for high-tech growth

Analysts said on Thursday that the unveiling of China Rare Earth Group Resources Technology Co., Ltd. will effectively boost the development of China’s rare earth metals industry, creating momentum for businesses from smelt processing to technology research in the coming years.

The remarks came after China Minmetals Rare Earth Co. Ltd., a subsidiary of China Rare Earth Group Co. Ltd., and a Shenzhen Stock Exchange-listed company, was renamed China Rare Earth Group Resources Technology Co., Ltd.. It aims at realizing high quality development. Enhancing the rare earth metals industry and its brand influence and market influence.

The move marks a new stage in the integration of the rare earth industry in China, said Weng Jiming, vice chairman of the State-owned Asset Supervision and Administration Commission of the State Council, the country’s top state asset regulator.

It will help China Rare Earth Group Co., Ltd., a Ganzhou, Jiangxi Province-based centrally administered state-owned enterprise, further improve the concentration of the rare earth industry in the country, strengthen the asset quality of listed companies, and integrate facility will be provided. industrial management and capital operations, Weng said at the new company’s opening ceremony on Wednesday.

In addition to the name change and equity integration, China Rare Earth Group Co., Ltd. will better connect the upstream and downstream sectors of the rare earth industry chain, and help promote the upgrading of traditional industries and the development of strategic emerging areas, said Ding Rijia. Said, a professor specializing in mining economies at the China Mining and Technology University in Beijing.

Jointly incorporated in December 2021 by three companies – Aluminum Corp of China, China Minmetals Corp and Ganzhou Rare Earth Group Co. , smelting and intensive processing are involved. Metal.

Its businesses will also include downstream applications, equipment manufacturing, industrial incubation, technical consulting services and foreign trade.

Ao Hong, chairman of China Rare Earth Group Company, said that the group will strive to make the newly listed company a leading listed company in the industry with remarkable professional advantages, great market influence and strong core competitiveness.

Rare earth metals are important strategic resources and key elements in the development of high-end technologies and green applications. They are highly valued by many technologies ranging from wind turbines to mobile phones, LED light bulbs and TVs.

China is the world’s largest exporter and stockpile of rare earth metals. Data from the General Administration of Customs showed exports of rare earth minerals rose 5.7 percent annually to 33,539 metric tons in the first eight months of this year.

As the government is determined to conduct a deeper integration of similar or homogeneous businesses among its central SOEs, it has fostered the cultivation of already world-class clusters with strong earning power and optimum resource allocation in key areas such as inspection and testing. has accelerated. Medicine and healthcare, equipment manufacturing, artificial intelligence, new energy, cloud computing, steel, logistics and other strategic as well as emerging industries.

Xu Baoli, a researcher at SASAC’s research center, said, “Since the space to cut the number of central SOEs through mergers and restructurings is limited, governments are increasingly trying to integrate their businesses to better optimize the allocation of resources. is willing to.”

For example, two subsidiaries previously involved in the testing and inspection business, previously owned by China General Technology (Group) Holding Co Ltd, were merged by the China Certification and Inspection Group in late August.

COFCO Group and China Grain Reserves Group Limited also established a new company – China Enterprise United Grain Reserve Co., Ltd., to manage the country’s grain reserves through equity collaboration in mid-August.

Li Congai, an analyst at Shanxi Securities, predicted that there would be more restructuring and integration steps among central SOEs in the coming years. Based on the country’s opening policies and economic development needs, the restructuring of central SOEs in industries such as the energy, automobile, transportation and military industries will be accelerated.

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