But what about Baotou?
From the Wall Street Journal, December 3:
The move, expected to be announced this month, would aim to strengthen China’s dominance of the global supply chain around the strategic metals
China has approved the creation of one of the world’s largest rare-earths companies to aim to maintain its dominance in the global supply chain of the strategic metals as tensions deepen with the U.S., according to people familiar with the matter.
The new firm will be called China Rare Earth Group and will be based in resource-rich Jiangxi province in southern China as soon as this month, the people said. The new entity would be created by merging rare-earths assets from some state firms, including Corp. , Ltd. and Ganzhou Rare Earth Group Co.
The combined group is designed to further strengthen Beijing’s pricing power and avoid infighting among Chinese firms, and to use that clout to undercut Western efforts to dominate critical technologies, one of the people said.
Estimates of China’s vary. Some analysts say China mines more than 70% of the world’s rare earths and is responsible for 90% of the complex process of turning them into magnets, analysts say. A White House report has estimated that China controls 55% of the world’s rare-earth mining and 85% of the refining process.
China’s state-owned Assets Supervision and Administration Commission, which oversees the biggest state firms, didn’t respond to a request for comment. China Minmetals, Aluminum Corp. of China and Ganzhou Rare Earth Group didn’t respond to requests for comment.
It is unclear whether the new company will have a nationwide scope or how China’s sizable rare-earth operations in Inner Mongolia are affected by the plan.
In September, the listed subsidiary of China Minmetals said in a filing to the Shenzhen Stock Exchange that its parent was planning a strategic reorganization with Aluminum Corp. of China and the government of the city of Ganzhou, in Jiangxi province, an important center for rare-earth production. The filing didn’t provide details and said the restructuring would be subject to government approval.
Rare earths are a group of 17 elements valued for their magnetic and conductive properties. They are used to manufacture a range of crucial technologies such as components in electric cars, smartphone touch screens and missile-defense systems. China’s dominance gives Beijing potential sway over makers of various fast-growing technologies.
The effort to consolidate the country’s position in rare earths comes at a time of increased sensitivity in the West that China could use its dominance in the industry as a geopolitical weapon.
Washington has raised concerns that Beijing could use its control of rare earths for strategic ends. In February, the U.S. Defense Department signed a technology investment agreement with Australia’s Ltd. , which the Pentagon called “the largest rare earth element mining and processing company outside of China.” Under the terms of the deal, Lynas will establish a light rare-earth processing facility in Texas.
At around the same time, President Biden naming rare-earth minerals as one of four key areas in need of more robust policy options to reduce supply-chain risks.
A White House review published in June said the U.S. should expect China to restrict exports of rare earths. It recommended numerous steps to expand domestic production and processing capacity in order “to increase the resilience of strategic and critical material supply chains.”
A senior official at Beijing’s top body overseeing government-backed companies said in an October press conference that the Communist Party would promote the restructuring of rare-earth assets, citing the need to optimize resource allocation and build “a world-class enterprise with global competitiveness.”....
....MUCH MORE
If interested see also September 25's "China to form two rare earth giants to strengthen pricing power":
This is the big dog.
And one that the Chinese government says will be on top of the mandated industry consolidation....
*****
The big dog has since changed its name, now China Northern Rare Earth (Group) High-Tech Co.,Ltd but it is still the big dog with the same stock symbol on the Shanghai Stock Exchange: 600111.
We've been tracking their doings since 2009:
We have a lot of posts on IMBSREHTCL, here's one of the more popular. From a couple years ago:
With a Name Like Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., it has to be good (600111:Shanghai)
In December 2007 I wrote:
[you really need to get out more -ed]
MEco was the number two stock in the Bloomberg Worldwide Index that year, up 5911.17%.
I vowed that I "will study and learn, and one day my chance will come."
[ummm, wasn't that Lincoln?]
So when a reader emailed in response to this morning's "China tightens grip on rare earths":
IMBSREHTco's parent company has world’s largest rare earths deposits.
[the first letters of the acronym are IMBS, tee hee -ed]
With a Name Like Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., it has to be good (600111:Shanghai)
In December 2007 I wrote:
How the heck did I miss Mongolia Energy Co. Ltd.?...The question has haunted me to this day.
[you really need to get out more -ed]
MEco was the number two stock in the Bloomberg Worldwide Index that year, up 5911.17%.
I vowed that I "will study and learn, and one day my chance will come."
[ummm, wasn't that Lincoln?]
So when a reader emailed in response to this morning's "China tightens grip on rare earths":
"How do I participate?"I had the [a -ed] answer.
IMBSREHTco's parent company has world’s largest rare earths deposits.
[the first letters of the acronym are IMBS, tee hee -ed]
