China has announced plans to restructure three rare-earths producers into a state-owned company controlling an almost 70% share of the domestic production quota for the commodities that are essential to making high-tech products, reports Nikkei. The move is aimed at increasing the development of resources and processing technology, as well as strengthening Beijing’s control over the mining sector in anticipation of prolonged trade tensions with the US.
China Minmetals Corporation (CMC), a major state-owned resource company, China Aluminum Corporation, a major state-owned nonferrous metals company, and the government of Ganzhou City in Jiangxi Province, a region known for its rare earth deposits, are “planning a strategic reorganization” of their respective rare-earths subsidiaries.
By restructuring the country’s major rare-earth companies, the government seeks to extend control from production to the entire supply chain, including exports. The move comes as the US looks to create an alternate supply chain for rare earths, joining forces with Australia.