(Yicai Global) Dec. 23 -- China, which has the largest rare earth metal reserves in the world, established the China Rare Earth Group today through the merger of the rare earth units of five state-owned minerals firms to accelerate the country’s green goals, better integrate resources, coordinate scientific and technological innovations and help solve industry-wide problems.

Aluminum Corporation of China, China Minmetals Corporation and Ganzhou Rare Earth Group, will each hold a 20.33 percent stake in the new entity, while China Iron & Steel Research Institute Group and the General Research Institute for Nonferrous Metals will each have 3.9 percent, CCTV Finance reported. The remainder is owned by the State-owned Assets Supervision and Administration Commission.

Based in Ganzhou, eastern Jiangxi province, the coalition will enhance research on rare earths and their applications, improve the conversion efficiency of resources to applications and solve imbalances in the rare earth industry chain, the report said.

It will focus on rare earth’s exploration and development, separation and smelting, deep processing, downstream applications, manufacturing of complete equipment sets, industrial incubation, technical consulting services as well as trade, it added.

Accelerating the green development and environmental protection of ion-type rare earth mines in the country’s south are key to the sustainable and healthy development of the industry, the report said.

Over a third of the world’s rare earth deposits, which consist of 17 minerals widely used in consumer electronics, glass, magnetic materials and industrial processes, are located in China at 44 million tons.

Aluminum Corp.’s share price [SHA:601600] was trading up 8.41 percent at CNY6.70 (USD1) as of 2:20 p.m. China time today and Minmetals Rare Earth’s stock [SHE:000831] nudged up 1.38 percent to CNY45.60 (USD7).

Editor: Kim Taylor