CIC to establish rare earth company in Inner Mongolia

(Chinadaily.com.cn)
Updated: 2009-09-24 21:01

China Investment Corporation (CIC), China's sovereign wealth fund, is negotiating with Baogang Group, the largest rare earth industrial base in China, to co-establish a new company for developing and reserving rare earth, Economic Information Daily reported, citing a source familiar with the plan.

The source told the newspaper the new company will be specialized in the development and reserving of rare earth resources in the Inner Mongolia autonomous region.

The registered capital of the new company will amount to as high as one billion yuan ($146.46 million), with CIC holding 80 percent of its shares.

An anonymous industry insider said cooperation between the CIC and Baogang is fully supported by the local government.

Inner Mongolia is abundant with rare earth and has mature facilities in rare earth developing and reserving. The rare earth reserves in Baotou, the largest city in central-west Inner Mongolia, accounts for 87 percent of China’s total and 40 percent of the world’s reserves.