Six China Rare Earth Element Producers & Affiliates Poised For “Super Growth”

China Rare Earth Element SOEs Are Well Positioned To Lead Global REEs Growth

Global REEs Growth Could Be 10x Higher (1000 percent growth in volume)

China began implementing rare earth policy in 2014 in order to consolidate and restructure China’s 80+ rare earth companies under six large state owned enterprise (“SOE”). Fully implemented in 2015, the rare earth restructuring plan to group all rare earth companies under six SOEs was a way to control rare earth supply, illegal mining and environmental damages. As the world moves to the second half of 2018, China’s SOEs are well positioned to lead the rare earth element industry to new levels.

The Editor’s experience with China rare earth SOEs suggests a new level of “global maturity”, discipline and vision about market development.  There is a recognition among China rare earth SOEs that the next level of industry growth will require a global production, processing and supply chain system.  To be clear, China believes there needs to be diversification in the rare earth element industry.  China is keen to see more western rare earth producers enter the market and growth.  While it might not seem obvious in a competitive sense, China SOEs realize that global industrial companies require multiple supply sources from many parts of the world.  This attitude is healthy and will bode well for the rare earth elements industry.

The six China SOEs include the following:

China Aluminum Group (Chalco)
Shenghe Resources Holding Co. Ltd (SHSE:600392)
Shanghai Prosolar Resources Development Co., Ltd (SHSE:600193)
Advanced Technology & Materials Co., Ltd. (SHSE:000969)

China Minmetals Group
China Minmetals Rare Earth Co., Ltd. (SZSE:000831)

Baogang
China Northern Rare Earth (Group) Advanced Technology & Materials Co., Ltd. (SHSE:600111)
Inner Mongolia Baotou Steel Union Co., Ltd. (SHSE:600010)

Xiamen Tungsten Group
Xiamen Tungsten Co.,Ltd. (SHSE:600549)

Southern(Ganzhou ) Rare Earth Group

Guangdong Rare Earth Industry Group
Rising Nonferrous Metals Share Co., Ltd. (SHSE:600259)

Market leaders indicate the global rare earth element industry could grow 10x in size with proper development of the global market. We will be part of the discussion and report new developments to readers as things develop.

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