Chinalco Forms JV for Rare Earth Exploitation, Guangxi

A spokesperson of Aluminum Corporation of China (Chinalco) tells reporters that a memo has been inked with Guangxi Nonferrous Metals Group to form a joint venture with the latter and several other investors, in which Chinalco will act as majority shareholder. Earlier, Chinalco has acquired Jiangxi Rare Earth and Rare Metals Tungsten Group Corporation.

Chinalco has not revealed the specific stake it will hold in the investment target. In September 2010, Guangxi Nonferrous Metals Group signed a cooperative agreement with Chinalco and Grirem Advanced Materials Co., Ltd. on the joint exploitation of rare earth resources in Guangxi Autonomous Region.

The agreement says that Chinalco and Grirem will inject more capitals into the rare earth exploitation subsidiary of Guangxi Nonferrous Metals Group to boost the latter's registered capital to CNY 500 million.

Guangxi is rich in the reserve of rare earth. In 2009 and the first half of 2010, the autonomous region obtained revenues of CNY 60 million and CNY 52 million respectively from the exploitation of the resources.