Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. and Jiangxi Golden Century Advanced Materials visit Asian Metal

Liao Xingeng, president of Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. Co., Ltd., and Jiang Yalong, president of Jiangxi Golden Century Advanced Materials Co.,Ltd visited Asian Metal in the morning of January 10, 2012 to communicate thoroughly on current tungsten and rare earth market.

Mr. Liao firstly introduced main business and operation situation of Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. to Bruce Zhang, manager of minor metals division of Asian Metal; Zhang Guoxu, analyst of tungsten products; as well as Zhao Bingyi, analyst of rare earth products. Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. Co., Ltd., focusing on tungsten, is a comprehensive enterprise including rare metals prospection, mining, smelting, processing, trading and equipment manufacturing. The company is involved in various products including tungsten products, rare earth products, nickel-cobalt products and secondary metals.

Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. has 37 wholly-owned or holding subsidiaries including 5 major shareholders. It comprises 7 large-scale tungsten mines such as Hukeng tungsten mine, Huamei'ao tungsten mine, Guimeishan tungsten mine; 5 smelting plants such as Youtai, Tonggu Chemical and Xinsheng Tungsten; as well as Fujian Ganmin Rare Metals New Material and Jiangxi Tungsten Hard Alloy Co., Ltd. By now, the company has formed a whole industrial chain and internal market system. Sales value is expected to be RMB13 billion in 2011, which makes the company out to be the leader of domestic tungsten industry.

Chinese government started to carry out regulation policy for non-ferrous metal industry in July, 2010. At the same time, Jiangxi government built Jiangxi Rare Earth & Rare Metals Tungsten Group (old Jiangxi Tungsten for short) on the basis of 28 non-ferrous metal companies in Ganzhou Jiangxi, which focused on tungsten, tantalum-niobium and rare earth. Jiangxi Tungsten Group Co., Ltd and China Minmetals Group built joint venture of Jiangxi Tungsten Group Co., Ltd (new Jiangxi Tungsten for short) in the end of 2003.

Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. became shareholder of Jiangxi Golden Century Advanced Materials with 73.53% of stock rights in June, 2010.

Jiangxi Golden Century Advanced Materials, founded in 2001 by 8 shareholders including Jiangxi Rare Earth Research Institution, had separation and export capacity approved by Chinese government. It possesses advanced technologies such as separation technology, electrolysis by fused oxide salt, calcium reduction and lanthanum reduction under high temperature, which makes it out to be one of major leaderships in domestic rare earth industry. The company would further optimize industrial layout after it becomes a member of Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp., which offers an import platform for rare earth development.

Since then, Jiang Yalong, president of Jiangxi Gold Century New Material Co., Ltd showed his thoughts on rare earth industry outlook. Rare earth prices increase sharply in Q1 and Q2, 2011, and many overseas companies have been doing exploration and mining in order to gain competitive capacity against China. Rare earth market softened and importers were unwilling to take position in H2 as global economy slowed. Hence, rare earth prices sped up to drop especially in the international market. According to data released by China Customs, export prices of cerium carbonate were at USD55/kg in December, 2011, while the prices accepted by importers were USD23/kg in overseas market. Hence, Chinese companies faced with great challenges.

Jiangxi Rare Earth & Rare Metals Tungsten Group Imp. & Exp. Co., Ltd. and Jiangxi Gold Century Advanced Material Co., Ltd would make efficient development plans in order to cope with challenges from both domestic and overseas markets.

At last, Mr. Liao and Mr. Jiang hope that there would be more opportunities for them to communicate with Asian Metal, and welcome Asian Metal to visit their offices. At the same time, they wish Asian Metal a bright future.