China is reportedly considering the merger of all rare earth miners and processors in the country into two giants to enhance global pricing power.
One of the rare earth mining majors would be in southern China and engage in the business of medium-to-heavy rare earths, reported Bloomberg News citing people familiar with the development.
Operating in the north, the other mining firm will be responsible for all light rare earth assets, according to the undisclosed sources.
However, it is not clear when the merger would be finalised.
For several years, the Chinese Government has been restructuring the mining industry into six state-controlled large groups.
Through the consolidation, the country seeks to sustain its leading position in producing rare earth minerals, reported the publication.
The latest move follows efforts by the US and European nations to boost their own production and supply chains of the strategic metals.
According to the people, Aluminum Corporation of China and other state-owned miners are expected to restructure their assets, marking the first step toward the country’s consolidation plan.
On the other hand, China Minerals, Aluminum Corporation of China, and the Ganzhou government in Jiangxi province are reportedly considering a strategic restructuring of rare earth assets, according to Global Times.
The Association of China Rare Earth Industry deputy head Chen Zhanheng told the Global Times: “The restructuring reflects growing government attention on the healthy development of the rare earths industry, which will help resolve persistent environmental problems while enhancing market concentration.”