The hot national trend of rare earth integration is gradually taking shape in the background. On March 30, the Jiangxi Quzhou Rare Earth Group was officially launched. Attendees at the event mentioned that the gathering was essentially an unveiling ceremony for the group, but it wasn’t publicly announced as such, reflecting a low-key approach by the organizers. Zhang Anwen, deputy secretary-general of the China Rare Earth Society, stated that the establishment of the Jiangxi Quzhou Rare Earth Group marks the formation of a structured platform for rare earth integration in the region, with the main players forming a “4+1†framework.
According to an authoritative source from the China Nonferrous Metals Industry Association, the country's rare earth integration has already achieved some results, though they have not been officially disclosed. The five entities involved in the “4+1†framework include Baotou Steel Rare Earth, Chinalco, Minmetals, Guangzhao Nonferrous Metals, and the newly established Jiangxi Quzhou Rare Earth Group.
Participants in the on-site meeting noted that the Jiangxi Quzhou Rare Earth Group, which includes Luzhou Rare Earth Mining Company, holds exclusive mining rights for rare earths in the region. All 44 rare earth mining licenses in Jiangxi are now under the group’s control. Going forward, the group plans to integrate downstream smelting and application enterprises, aiming to consolidate 70-80% of the region’s rare earth mining and smelting capacity within the group. The projected output is around 40,000–60,000 tons annually, compared to China’s total mining quota of 90,000 tons in 2012.
Previously, the Jiangxi Zhongzhou Rare Earth Resource Integration Platform had not reached a final conclusion, leading to intense competition between central enterprises and local players. Companies like Minmetals and Baotou Steel Rare Earth have been actively involved, and now all hope to gain control over the integration process.
In May 2011, the State Council issued "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry," aiming to establish a standardized and orderly rare earth industry within 1-2 years. It also aimed to create a market dominated by large enterprises, with the top three groups in the southern ion-type rare earth industry reaching over 80% market concentration.
With this, national rare earth integration has officially begun. Major players such as Minmetals, Chinalco, China Colour, Jiangxi Copper, Guangzhao Nonferrous, Xiamen Tungsten, and Yanzhou Mining have all joined the wave of mergers and acquisitions, striving to secure the top three quotas.
Zhang Anwen further explained that the current rare earth integration framework in China consists of four major southern entities and one northern entity. Chinalco integrates rare earth companies in Jiangsu; Guangshao Nonferrous leads rare earth integration in Guangdong; Cangzhou Rare Earth Group serves as the platform for integrating resources in Ganzhou, Jiangxi; and Minmetals has merged several rare earth enterprises in Jiangxi, Guangxi, and Hunan, while also seeking involvement in Guangdong’s integration. The northern entity is Baotou Steel, which focuses on light rare earths.
Among these five key integration players, both Quzhou Rare Earth and Baotou Steel hold significant advantages in rare earth resources, creating a clear north-south divide in the industry.
China’s rare earth resources can be divided into two categories: light rare earths in the north and heavy rare earths in the south. Northern light rare earths are mainly found in areas such as Baotou (Inner Mongolia), Liangshan (Sichuan), and Weishan Lake (Shandong). Southern heavy rare earths are centered in Ganzhou, Jiangxi. Baotou Steel, a core player in the northern light rare earth sector, is actively forming alliances with companies in Sichuan and Shandong, aiming to establish a comprehensive rare earth group in northern China.
Data shows that the Baiyun Obo Mine, operated by Baotou Steel, is the largest rare earth mine in China, with reserves accounting for 87.7% of the country's total. As Baotou Steel accelerates its rare earth integration efforts, its resource base will only grow stronger.
Jiangxi holds about 40% of China’s ionic rare earth reserves, most of which are located in Zhangzhou. All mining rights in Zhangzhou are now under the control of the Luzhou Rare Earth Group.
Additionally, there are numerous rare earth resources spread across other regions. In comparison, Minmetals and Chinalco have relatively lower levels of rare earth resources among the five major integration entities.
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