- CNTV English - CCTV News

Homepage > News > Biz >

Chinalco steps up drive for rare earths

08-05-2010 14:37 BJT

BEIJING - Aluminum Corp of China (Chinalco), China's largest aluminum producer, is eyeing rare earth mines in Guangxi Zhuang autonomous region to bolster reserves, sources familiar with the matter said on Wednesday.

Chinalco has initiated discussions with the Guangxi State-owned Assets Supervision and Administration Commission (SASAC) to develop rare earth mines with local miners, and also participate in the processing projects, said the source on condition of anonymity.

Chinalco Vice-president Lu Yongqing confirmed that the company was in talks with the Guangxi SASAC, but said nothing has been finalized yet.

China supplies more than 95 percent of the global output of rare earth oxides and sits on half of the reserves in the world. Apart from Guangxi, most of the rare earth output is from the Inner Mongolia autonomous region as well as Jiangxi, Guangdong, Hunan, Fujian and Sichuan provinces.

The government has indicated that it wants big companies to spearhead the consolidation of the nation's rare earth sector, which has been largely undervalued by over-exploitation and poor management.

Rare earths, comprise of 17 elements, which are used in many high-tech sectors like wind turbines, hybrid cars, missiles and mobile phones.

Industry sources said Inner Mongolia-based Baotou Steel Rare Earth High-Tech Co has led rare earth consolidation in northern China, while Jiangxi Copper Corp and Ganzhou Rare Earth Mineral Industry Co will take up the mantle in Sichuan and Jiangxi.

But the consolidation pace has not been progressing as expected since the 123 rare earth mines are spread across the nation.

Guangxi is a region with rich rare earth resources that are yet to be developed.

Analysts said Chinaclo's move is in line with the government's plan to keep most of the rare earth mining under the ambit of State-owned enterprises. Earlier media reports suggested that the government had identified several large State-owned miners for the rare earth exploration business.

"Rare earth accounts for a small proportion of Chinaclo's business. The move to gain rare earth mines is a strategic plan and in line with the government thinking," said Liu Minda, an analyst with Huatai Securities.

The Ministry of Land and Resources said in March that production of rare earth would be capped at 89,200 tons in 2010, up 8.36 percent from 2009.

Editor:Xiong Qu |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program