(Yicai) March 5 -- The joint venture between Chifeng Jilong Gold Mining and Xiamen Tungsten will purchase a controlling stake in a company licensed to mine rare earth resources in Laos.

The Shanghai-incorporated JV will invest USD19 million through its unit Chixia Laos Holding to buy a 90 percent stake in China Investment Mining Laos Sole, which holds 86 percent of a rare earth mining development project in Mengkang county in Laos' Xieng Khouang province, Chifeng Jilong and Xiamen Tungsten announced yesterday, citing a deal signed on the same day.

The infrastructure construction of the project in Mengkang is ongoing, expected to be completed about 40 days after the take-over by Chixia Laos. Production will kick off right after.

The project, which is designed to mine 3,675 tons of mixed rare earth oxides per year, has minable rare earth oxide reserves of nearly 15,298 tons spread over a mining area licensed for trial production of about eight square kilometers.

With the acquisition, the JV is expected to advance the integration of its rare earth resource development business in Laos into its two shareholders and obtain considerable rare earth resources and income.

Chifeng Jilong holds a 51 percent stake in the Shanghai-incorporated rare earth resource development JV, while Xiamen Tungsten owns the remaining 49 percent.

Chifeng Jilong [SHA: 600988] closed 2.3 percent up at CNY13.94 (USD1.94) in Shanghai today. Xiamen Tungsten's stock [SHA: 600549] closed 0.7 percent down at CNY16.67 today.

Editor: Futura Costaglione