RE Integration: Local Government wins

January 8 , the Ministry of Industry and Information Technology jointly with relevant departments in Beijing held a rare formation of large enterprise groups thematic sessions. The meeting said, according to the law of survival of the fittest market , six companies led industry development pattern. Next , to the flow, focusing on this six companies were led to further promote mergers and acquisitions , formation of large rare earth enterprise groups.

Ministry stressed that full play a decisive role in the allocation of resources in the market , business-oriented , diversified investment , market operation , and promote mergers and acquisitions by the "Let Me restructuring" to "I want restructuring" changes.


Local government to speed up the integration of resources

A leader Baotou Rare authorities told reporters that the relevant leaders and Inner Mongolia Autonomous Region to conduct a meeting to discuss the future of Baotou Rare Earth integration issues . In his view , this clearly six main business integration , the future integration of the rare earth market will basically have the final say , by a large force to promote the restructuring of the Group , consistent with the idea that the Ministry of Industry .

Within an industry veteran told reporters : "I do not agree with this approach to engage the Ministry of Industry , the market is the decisive force , although the Ministry also stressed the role of the market , but this practice law at the outset is not market-oriented approach . Chinese nonferrous metal companies will be willing to let this 5 Restructuring ? "

May 2011 , the State Council issued the " Opinions on Promoting the sustainable and healthy development of rare earth industry ," and proposed the formation of large-scale enterprises basically dominated the pattern of rare earth industry , industrial conglomerates Southern ionic concentration of rare earth industry 's top three 80 % or more, ie "1 +3" pattern.

2012 , Minister of Industry and Information Technology Miao Wei said that in order to cherish precious Chinese rare earth resources and the sustainable use of rare earth enterprises to integrate the country to form the 2-3 large enterprises, " integration program is not necessarily divided by province . " But his words have been counterproductive .

Local governments have accelerated the pace of integration of rare earth resources , Baotou Steel Rare Earth "dominate " the North . On the south , the Minmetals has rare earth mine in Hunan ; integration of rare earth resources in Chalco Guangxi ; Rising colored body integration is rare in Guangdong Province , and entered the Yunnan ; Ganzhou , Jiangxi Rare Earth Rare Earth Group is an integrated platform ; Fujian formed厦门钨industry as the core of the rare earth group .

Last year came news that the integration of identified five rare earth companies , which did not Xiamen Tungsten . However, due to the local Fujian Xiamen Tungsten Rare integration has been the main body , which also led to the Ministry of Industry and manufacture of the " 1 +5 " pattern.

Baotou Steel Rare Earth Integration :

12 variants 9 , the remaining three on the road

Integration of the leading North Baotou Rare Earth Rare walking north on the road uniform . Zhang Zhong , general manager of Baotou Steel Rare Earth , said the formation of the North Rare Earth Group will be divided into three steps , the first step in the completion of regional integration within the Inner Mongolia Autonomous Region , the second step is completed in Sichuan , Gansu, Shandong and other regions of the light rare earth consolidation, the third step the integration of the heavy rare earth resources at home and abroad .

But the first step allows a lot of people by surprise. The original 12 companies are reorganized into a 9 .

In this regard, Zhang Hui told reporters that day , these companies covering the upstream enterprises in Inner Mongolia Rare Earth . This reorganization of the remaining three are not , because the conditions are not ripe . Many various reasons , including not want to be more than their own reasons , including the restructuring .

January 3, 2014 , Baotou Steel Rare Earth announced that the December 31, 2013 , the controlling shareholder of the Company and the Inner Mongolia Baotou Steel Group Rare nine private companies signed the " integration and restructuring agreements ."

Previously, December 27, 2012 , with 12 participating in the Baotou Rare Earth integration and restructuring companies signed the " Inner Mongolia Rare Earth upstream integration and restructuring framework agreement ," a key step in Inner Mongolia Rare upstream integration and restructuring .

ZHANG Ri -hui said that if the conditions are not met , this three will likely be abandoned.

But the government obviously does not want such a situation . Baotou Rare Earth above the competent department leader told reporters : "The board equity relationships that three companies did not reach agreement . Currently stepping up to do the work in this area, which three have to continue to do so. "

Two central enterprises pk3 home local businesses

January 8th day laborers completed the formation of the Ministry held a special meeting to a large group of rare earth enterprises , the two central enterprises action is not quickly.

Action is slightly faster in aluminum. Huang Chao Chalco Guangxi Nonferrous Metals Rare Earth Development Co., Ltd. , general manager , told reporters : "Integration just heard the news . Today, just to convey the spirit . But how to do this , not research . "

Yang Xinglong said that the matter is not yet known .

Now, after several years to accelerate the pace of consolidation , the basic form of rare earth industry south and central rate local businesses coexist . Baotou Steel Rare Earth , Rising colored , Ganzhou Rare Earth , Xiamen Tungsten and other resources for local businesses due to the master link to group integration, while Minmetals and through mergers and acquisitions in the downstream aluminum smelting separation and processing industries , and gradually penetrate to the upper reaches of use "infiltration routes " to obtain the right to speak upstream .

Whether there will be competition in the face of integration problems in the future , Yang Xinglong told reporters that the current central and local businesses compete both , there are also cooperative .

There is no doubt that the future integration of rare earth will become increasingly fierce competition in the South . Some media reported that the parties are now competing for the rare earth resources in Sichuan province , but there is a listed company in Sichuan Sheng and resources , as well as Leshan Institute of Rare Earth New Materials Co. , foreign enterprises to integrate difficult to imagine.

MIIT also stressed: the local government to establish a coordination mechanism to play a decisive role of the market in resource allocation , unified planning of the area of mergers and acquisitions work ; coordinating off, converting, staffing , maintenance, major issues of social stability , and support for the central enterprises and other Group to carry out cross-regional mergers and acquisitions work .


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