The China South Rare Earth Group has been formed following the merging of 24 rare-earth metal companies, the state Xinhua news agency reports. The group has an investment tag of CNY1 billion (USD150.5 million) and the ability to mine 43,600 tonnes of rare-earth metals per annum to smelt and separate 59,200 tonnes of the minerals per annum.
Significance: The new China South Rare Earth Group was formed by a group of companies mainly located in the southern region of China, including Ganzhou Rare Earth Group, Jiangxi Copper Group, and Jiangxi Rare Earth and Rare Metals Tungsten Group. The group was formed in April 2015 and is based in Ganzhou city, Jiangxi province, China. The government has issued annual quotas on the amount of rare-earth metals to be mined and has also cracked down on illegal mining activity of the metals in China. In 2011, the State Council of China initiated a mandate to crack down on the illegal mining and push for more mergers in the industry. In 2014, the China North Rare Earth Group was formed following the merging of five mining firms, Baotou Feida Rare Earth Company, Baotou Jinmeng Rare Earth Company, Baotou Hongtianyu Rare Earth Magnets Company, Wuyuan Runze Rare Earth Company, and Xinyuan Rare Earth Hi-Tech & New Material Company, making a new large conglomerate capable of processing 73,500 tonnes of rare earths per annum.
