"Rare earth national team" appears: China Minmetals of Minmetals speeds up the local ring mine

On January 20, this reporter learned from authoritative sources that Minmetals and Chinalco are negotiating rare earth business cooperation in various regions of the South. The Central Government and other central enterprises are also trying to become a member of the "national team" of rare earths.

Among them, Minmetals and Chinalco's rare earth strategy has many similarities - one is to obtain resources as one of the goals, both have plans to develop deep-processing downstream industries, focusing on access to medium-heavy rare earth.

This means that the "national team" will inevitably face fierce competition in the integration of rare earths.

It is worth noting that Minmetals and Zhushan, Hubei Province, are planning to cooperate in the exploration and development of rare earth mineral resources in Zhushan County, and Chinalco will also negotiate rare earth cooperation with Guangxi and Guangdong Qingyuan. This indicates that Minmetals, Chinalco and other rare earth "national teams" have made initial progress in integrating local rare earth resources.

A person in charge of the Beijing Nonferrous Metal Research Institute told this reporter that at present, the Ministry of Land and Resources is studying the reform of rare earth mineral rights to effectively promote the integration of rare earth resources.

The director of the SASAC, Wang Yong, also told this reporter that the SASAC supports Minmetals China and other powerful central enterprises to integrate local rare earth resources.

The "national team" speeds up the local ring mine

On January 19, related persons from Chinalco Investment Planning Department revealed that Chinalco intends to establish a joint venture with Guangxi Nonferrous Group to develop rare earth resources in Guangxi.

Our reporter was informed that before Chinalco, another central government group, the China National Group, also signed an agreement with the Guangxi Autonomous Region government for the development of rare earths.

An insider of a subsidiary of the Guangxi Nonferrous Metals Group told this reporter that the company intends to integrate Guangxi rare earth resources and promised to help Guangxi Nonferrous Metals Group’s sole rare earth business platform, Jinyuan Rare Earth Co., Ltd., to be listed.

However, due to the "China Aluminum outperforms China's conditions," and Chinalco's years of deep cultivation in the non-ferrous metals sector in Guangxi, the Guangxi Autonomous Regional Government eventually chose to sign a strategic cooperation memorandum with Chinalco.

Another gain from Chinalco's integration of local rare earth resources is the Jiangxi Tungsten Group (hereinafter referred to as Jiangwu). The above-mentioned Chinalco sources told this reporter that Chinalco's use of Jiangzhe to integrate Jiangxi's rare earth resources has been planned.

In addition to Guangxi and Jiangxi, Chinalco is also negotiating a rare earth cooperation project with Guangdong Qingyuan, but it has not yet signed any agreement.

Informed sources told this reporter that Chinalco has "difficulty" in entering Guangdong's rare earth industry because Guangdong Province has already adopted the Guangshen Nonferrous (600259) Group as the only rare earth business platform.

The above-mentioned sources also told this reporter that apart from planning to integrate rare earth resources in the above areas, Chinalco is still negotiating rare earth cooperation with other regions, but it is not yet open to the public.

Another Chinalco insider told this reporter that Chinalco will develop rare earth businesses through various means. "Jiangwu and Guangxi are two different models." Chinalco will not be limited to acquiring rare earth mining rights. Of course, access to resources is the best choice for Chinalco.

Minmetals is concentrated in Hunan, Hubei, Jiangxi and other places

Our reporter was informed that although Hunan Research Institute of Rare Earth Metal Materials has opened its doors, Minmetals has not given up its rare earth resources and plans to expand production capacity of Hunan rare earth smelting enterprises.

In addition, the Minmetals also emerged in Hubei rare earth industry.

Like Chinalco, Minmetals is also looking for new rare earth integration opportunities in Guangdong, Sichuan and Jiangsu.

At this point, Chinalco and Minmetals have clearly become the protagonists of the rare earth "national team".

Minmetals temporarily leads

In terms of rare earth business, China Aluminum is considered a "new recruit" compared with Minmetals.

According to the reporter’s understanding, Minmetals has a good development base in the rare earth industry. It owns smelting and processing enterprises of rare earth products in Hunan and Jiangxi, and has a rare earth separation capacity of 13,600 tons/year. It is currently the largest in scale, the most technologically advanced, and the quality of products. The best ion rare earth separation enterprise group is also the largest rare earth product operator in China.

An expert from the Chinese Society of Rare Earths told this reporter that although Minmetals currently does not have a rare earth mining certificate, the actual production of medium- and heavy-earth rare earths is the largest in the country. In the future, with the increase in integration efforts, Minmetals is expected to become an authentic rare earth developer.

In addition, Minmetals has strong capabilities in the exploration of mineral resources, which brings advantages for Minmetals to integrate local rare earth resources. Because local governments often do not have the exploration technology and financial strength.

Minmetals' advantage in rare earth business is also reflected in its export trade. Minmetals Group President Zhou Zhongshu said that in 2010, Minmetals’ rare earth export customs ranked first.

Chinalco's strength in the rare earth business is relatively weak. However, Chinalco is still leading the integration of rare earths with its financial strength and R&D capabilities.

In Chinalco's multi-metal strategy, the importance of rare earth development plans is second only to Chinalco's traditional aluminum and copper products. In the face of the weak foundation, Chinalco has adopted a differentiated competitive strategy of “focusing on key products” in the development of its rare earth business, and strives to create an absolute advantage in 3-5 rare earth elements.

Emphasis on R&D of new rare earth materials

Lin Donglu, secretary general of the Chinese Society of Rare Earths, told this reporter that in the rare earth integration, powerful large-scale central enterprises should pay attention to the downstream deep processing technology, especially the R&D of new rare earth materials. This is the weak link of China's rare earth industry and also the future of China's rare earth enterprises. The direction of development.

"The development of deep-processing technology, innovative research and development of rare earth materials, generally only large companies have the conditions and strength." Lin Donglu said.

The development of new rare earth materials is exactly the development plan for Chinalco and Minmetals.

Chinalco General Manager Xiong Weiping told this reporter that Chinalco will not focus on rare earth separation because domestic separation production capacity is already in excess. Chinalco will pay attention to the research and development of high-end rare earth materials.

Although Minmetals is the largest ionic rare earth separation company in China, Zhou Zhongshu made it clear that Minmetals will strengthen R&D and production of strategic emerging industries related products such as rare earth functional materials.

According to the reporter’s understanding, among the six major operations of Minmetals, science and technology is one of the major business segments. Minmetals' scientific and technological sector will rely on scientific research institutes such as the Changsha Research Institute of Mining and Metallurgy and increase research investment in metallurgy and other areas. . China's metal companies rarely have separate scientific research businesses. The weak R&D capability has always been a constraint for the development of metal companies.

Lin Donglu said that the future of China's rare earth industry is technological innovation, who occupy the commanding heights of technology, who will occupy the future of the rare earth industry.

However, the premise of the development of rare earth processing technology is to ensure the supply of resources. Therefore, Minmetals and Chinalco will continue to "circle mines" in various places.

Zhou Zhongshu stated that Minmetals will focus on increasing the proportion of upstream resources allocation for commodities with a more prominent market position such as rare earth.

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