China has approved the merger of three leading rare earths companies, creating a state-owned powerhouse that will be the world’s largest producer of the strategic resource and strengthen government control over the industry.
In a statement, China Minmetals Rare Earth Co said it had been granted approval by the State Council, the nation’s cabinet, to merge with two other state-owned giants, Chinalco Rare Earth and Metals Co and Ganzhou Rare Earth Group, to form a new group under the direct control of the central government.
State media have called the new entity, China Rare Earth Group, an “aircraft carrier” in reference to its size and industrial might, noting that it will control 70 per cent of China’s rare earths output. Rare earth elements are a group of 17 minerals used in the manufacturing of everything from electronic products to electric vehicles and wind turbines.