Contents:
1. Only 2 RE Companies Quotas Increase;
2. Hostages Exchanged;
3. China RE-Organisation to ONE Company?;
4. Power-Cuts;
5. Ionic out of Focus;
6. Rainbow Pick K-Tech;
7. Arafura & The Bloomberg Daimler Hoax;
Impact on Rare Earths
Currently, China is running low on rare earth raw materials. For a number of reasons, one of them being environmental, China would not like to further exploit its own rare earth resources and would rather import rare earth raw materials. While current import options seem to be maxed out, the question is, what next?
One option is, to invest in foreign rare earth resource projects. Already beginning of the year China’s Minister of Industry & Information Technology had called for sino-foreign cooperation in rare earth raw materials. This, however, requires a minimum of political goodwill between China and the rest of the world. And that could now be created, with the hostage situation out of the way.
However, there is the new obstacle, called AUKUS:
China RE-Organization
Last week Minmetals issued a release on the stock exchange late on September 23, which announced consolidation talks among the major rare earth groups:
The ultimate controller of the listed Minmetals Rare Earth Co., Ltd, China Aluminium, and Ganzhou People’s Government, who is the ultimate controller of China Southern Rare Earth Group. The announcement cautioned, that whatever plan has not yet been approved.
This of course unleashed a lot of speculation. Our take is, that this particular incidence is the re-organization of Minmetals Rare Earth Co., Ltd. to fold it into China Southern Rare Earth Group.
Two China Rare Earth Companies?
The “two group” approach is ages old and any increase in rare earth production quota is imited to China Southern and China Northern rare earth groups. The two state-owned company approach would be similar to dividing up economic sectors among two instead of one state-owned enterprises in the early stages of China’s reform, to create competition. From today’s point of view, in terms of much promised reform in China, such a two-company arrangement would be a giant leap backwards.
Hardly anyone noticed that this was preceded by a “cooperation agreement” between China Aluminum’s China Rare Earth Co., Ltd. and China Northern Rare Earth Group on September 10, published just a day ahead of the Minmetals announcement.
Read on ....
Managed & Built by I2M Consulting, LLC | © 2010-
