China's rare earth industry has made new progress in north-south integration

Drying equipment

China Drying Network Co., Ltd. has received new attention from the industry. On July 21, Baotou Steel Rare Earth issued an announcement announcing that it has jointly established six rare earth metals exchanges with Xiamen Tungsten Industry and China Nonferrous Metals Construction Co., Ltd. to establish a rare earth exchange. According to industry sources, the establishment of this exchange will mean the end of the integration of China's northern rare earth. At present, the integration of rare earths in South China is also filled with smoke. With the rapid progress of the integration of North and South rare earths, the chaos of disordered competition in China's rare earth industry is expected to end.

In May last year, the government of Inner Mongolia Autonomous Region issued the "Inner Mongolia Rare Earth Upstream Integrated Enterprise Elimination Work Plan" and plans to start 35 integrated operations for the rare earth upstream enterprises. According to related sources, the implementation of the northern rare earth industry consolidation plan for more than one year is nearing completion, and 13 companies that have been included in the scope of Baosteel's rare earth reorganization and integration will be integrated into listed companies in the near future. With the integration and absorption of these upstream companies, Baotou Steel Rare Earth formally established its unique franchise status in the north China rare earth market.

It is reported that the integration of rare earths in the north has been settled, and the integration of rare earths in the south has also entered an accelerated phase. On June 1st, Guangdong Province issued the “Opinions on Promoting the Integration of the Rare Earth Industry in Our Province” to set a timetable for the integration of rare earth resources and rare earth industrial chain in Guangdong Province. On July 7, the rare earth industry group of Guangdong Province signed a framework agreement for the development of rare earth industry cooperation with seven cities, Shaoguan and Heyuan. Experts said this shows that the integration of rare earths in the South has entered a substantive stage.

It is understood that in the southern rare earth territory where the leading effect is not obvious, the integration of the rare earth industry is rather complicated. The integration involves three central enterprises such as Chinalco Corporation, China Minmetals, and China Nonferrous Metals Corporation, and Chenzhou Rare Earth, Jiangxi Copper, Guangwu Nonferrous Metals, etc. 3 local businesses. According to industry analysts, Guangshen Nonferrous Metals, the only legitimate miner in Guangdong Province, will have the opportunity to integrate all the rare earth resources in Pingyuan County and Xinfeng County and firmly grasp Guangdong's rare earth control rights. As Chinalco and Minmetals have been fighting for the rare earth resource in Jiangxi Province, Jiangxi Copper with a strong local color may have an opportunity to seize the opportunity. Although the reserves of Hunan rare earth resources are not large, but the protection of resources is better. Minmetals Group will rely on its location advantage of the Zhuzhou Metallurgical Group, or it will take an advantage in Hunan's competition for rare earth resources.

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