CNMC shores up position in south China rare earths industry
Shanghai. July 8. INTERFAX-CHINA - China Nonferrous Metal Industry's Foreign Engineering Construction Co. Ltd. (NFC), a subsidiary of state-owned China Nonferrous Metal Mining (Group) Co. Ltd. (CNMC), is to establish a rare earths joint venture (JV) with privately-owned Yixing Xinwei Group Co. Ltd. (Xinwei Group), NFC announced July 8.
The move is intended to improve CNMC's chances of being chosen as one of the three companies that will lead south China's rare earths industry as part of consolidation plans announced May 19 by the State Council, under which three major players will be handed control of 80 percent of the market.
The JV, NFC Rare Earths (Guangdong) Co. Ltd., will be based in Guangdong's provincial capital of Guangzhou and focus on rare earths separation.
The two sides will contribute assets worth an aggregate RMB 1 billion ($154.55 million), including RMB 300 million ($46.36 million) in cash, with NFC taking a controlling 51 percent stake, a NFC representative told Interfax July 8 under condition of anonymity.
"CNMC's contribution will include a rare earths separation plant with a 7,000-ton capacity, while Xinwei Group will contribute facilities with an annual separation capacity of 10,000 tons," the representative said.
CNMC broke ground on the 7,000-ton plant in Guangdong's Xinfeng County in May, Interfax reported, with production scheduled to begin in 2013.
Jiangsu Province-based Xinwei Group is primarily involved in the rare earths sector. The firm established a JV with NFC in May to explore mineral resources in northern Myanmar.
CNMC has interests in construction and the exploration and trade of nonferrous minerals.
-KHM