Xiamen Tungsten and China Rare Earth Group sign agreement to form JV controlling rare earth mining and refining in Fujian province, China

Xiamen Tungsten (XTC), otherwise known as Golden Dragon Rare Earths, and China Rare Earth Group (CREG) signed a cooperation framework agreement which would see the two companies enter a JV to operate rare earth mining and refining in Fujian province, China. The joint venture will be 51% owned by CREG, with XTC holding the remaining 49% ownership, effectively transferring control of XTC’s rare earth operations to CREG. XTC owns four rare earth mining operations in Fujian province, though only the Zhongfang deposit located in Changting Chiyou has been in operation recently, with the other three being suspended in the 2010s. Separation and refining capabilities held by XTC in Fujian province have had a capacity of 5.0ktpy REO, though have bee restricted by production quotas in recent years.          

The cooperative agreement between XTC and CREG continues the consolidation of the Chinese rare earths industry which has been on-going since the early 2010s. Project Blue calculate that collectively, the newly formed CREG consortium now accounts for 33% and 36% of the 2022 Chinese mining and refined quota, respectively, but accounts for 100% of the heavy rare earth mining quota.

Both XTC and CREG expect further expansions of both mining and smelting capacity over the coming years, though further investments in the JV will be guaranteed and supported by CREG and XTG in proportion to equity. Future development includes applications the renew and expand mining rights at Zhongfang, while maintaining long-term reserves in Fujian Province at more than 20ktpy REO. A new 5k-10kt REE separation facility is also expected to be developed as part of the new JV, located in Fujian province.