EDITOR: | February 4th, 2013 | 1 Comment

China’s Six Imminent Heavy Rare Earth Mining Projects

| February 04, 2013 | 1 Comment
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imagesCA1HBMN2Despite China’s tightening control on mining rights, there are six ion-absorbed-type rare earth mining projects, which have passed the environmental assessment at the end of last year. These new projects, involving medium and heavy rare earth elements, will be established in five southern regions of the country, which includes Jiangxi, Fujian, Guangxi, Guangdong and Hunan province, respectively. In principle, due to local government efforts to actively promote the development of rare earth mining projects, the start of construction is imminent.

According to the Project Evaluation Report published by the local government, the six ion-absorbed-type rare earth mining projects may be briefly summarized as follows:

▲ Ganzhou rare earth integration project.
This project will be established in Rongnan, Ganzhou city, Jiangxi province, which is to be designed for the production of 27100 metric tons rare earth carbonate with mixed rare earth oxide at 7,783.97 metric tons (TRE2O3, with an average grade of 92% REO) per year as well as the service life of the project of 14.65 years, Ganzhou Rare Earth Mineral Industry Co., Ltd, the company with a total investment of 664.4 million Yuan.

▲ Pingyuan County Renju rare earth deposit integration project.
This project will be established in Pingyuan County, Meizhou city, Guangdong province. It is designed for the production of 2875 metric tons rare earth carbonate, equivalent the mixed rare earth oxide at 1000 metric tons (TRE2O3, with an average grade of 92% REO) per year as well as the service life of the project is 16 years, Pingyuan Huaqi Rare Earth Industrial Co., Ltd., the company with a total investment amounted to 72.88 million Yuan, including 7.118 million Yuan investment in environmental protection.

▲ Dapu County Wufeng rare earth deposit integration project.
This project will be established in Dapu County, Meizhou city, Guangdong province, designed for the production of 2377 metric tons rare earth carbonate, equivalent the mixed rare earth oxide at 500 metric tons (TRE2O3, with an average grade of 92% REO) per year as well as the service life of the project is 10 years, Dabu County Xincheng Industry and Trade Co., Ltd., the company with a total investment amounted to 50.62 million Yuan, including 13.66 million Yuan investment in environmental protection.

▲ Changting County zhongfang rare earth deposit development project.
This project will be established in Changting County, Longyan city, Fujian province, designed for the production of 673.305 metric tons rare earth carbonate, equivalent the mixed rare earth oxide at 134.661 metric tons (TRE2O3, with an average grade of 92% REO) per year as well as the service life of the project is 10 years, Xiamen Tungsten Co., Ltd. (XTC), the company with a total investment amounted to 12.79 million Yuan.

▲ Chongzuo Liutang rare earth deposit development project.
This project will be established in Chongzuo city, Guangxi province, designed for the production of 233 metric tons mixed rare earth oxide (TRE2O3, with an average grade of 91% REO) per year as well as the service life of the project is 8–10 years, Chalco Rare Earth (Guangxi) Group, the company with a total investment amounted to 206.32 million Yuan, including 9.93 million Yuan investment in environmental protection.

▲ Jianghua County rare earth deposit development project.
This project will be established in Jianghua County, Yongzhou city, Hunan province, designed for the production of 3000 metric tons mixed rare earth oxide (TRE2O3, with an average grade of 92% REO) per year as well as the service life of the project is 7 years, China Minmetals Rare Earth (Jianghua) Co., Ltd., the company with a total investment amounted to 83.87 million Yuan.

The six new HREE projects, generally, will have a construction period of one year. These projects, when fully put into operation, will be able to reach an annual production capacity of 12,651.63 metric tons of mixed rare earth oxide. However, due to the Chinese government restrictions on rare earth mining and production volumes of rare earth metals, in the next 5–10 years, which will be expected to become one part of major supply sources of the medium and heavy rare earth elements in China’s rare earth market.


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Comments

  • asrms

    I know little with regard to the details of rare earths. However, I do hold several companies and have been buying in over the last couple of years. My question is – is it possible that we will have two markets for these products develop over time? A Chinese production that caters predominantly to an internal demand and a non Chinese that caters to those consumers who do not wish to buy from a provider who has a geo political as well as an economic agenda. If Japanese, American and European consumers/governments wish to buy from sources that have a purely profit motive and can guarantee supply for the next 30 – 50 years, then do they not create their own specific market with such focused rare earth companies? For example, Lynas (which I hold) has light ree off take agreements already with a number of consumers. Further Lynas is also developing its own hree deposit. Molycorp is producing and so will a number of other rare earth companies in the next 2 – 4 years. There will probably be buyouts of companies and in ground resources which will be profitable for investors who have bought into companies at low prices. I think we may be giving too much credence to the long term influence of China on this market. However, I do agree that short term over the next 6 – 18 months there will be stomach churning volatility with these stocks. But I do believe that over time the two geographical markets will diverge and solidify allowing a number of companies and investors to prosper. Just my view.

    June 5, 2013 - 9:30 PM

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