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China Moves To Dominate The Rare Earths Market
Annie Fixler & Louis Gilbertson, FDD: China Consolidates Rare Earth Supply Chain
Peng Huagang, secretary general of China’ State-owned Assets Supervision and Administration Commission, confirmed last month that the Chinese Communist Party (CCP) will “promote the restructuring of rare earths to create a world-class company.” While it remains unclear what this
Peng’s remarks come on the heels of China Minmetals Corporation’s September Shenzhen Stock Exchange filing, which announced a planned restructuring with China Aluminum Company (Chinalco) and the People’s Government of Ganzhou, a municipality in southeastern China. A merger would create China’s “second-largest rare earth producer by capacity,” according to Reuters, behind China Northern Rare Earth Group. The latter is the world’s largest supplier of rare earths.
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WNU Editor: I am not sure if China will succeed. The US can easily bust up this monopoly by guaranteeing to purchase rare earths only from Western producers at a set price and duration.
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