As the Chinese government tightens restrictions on rare earth exports, foreign enterprises have started to look for ways to obtain rare earth resources from China through other methods.
Accordingly, Korea Resources Corp. announced on June 10 an investment of a total of RMB 59.76 million ($8.76 million) by a new consortium it has formed with South Korean steelmaker POSCO Group, with a view to taking control of Yongxin Rare Earth Trading Corporation, a company based in the Inner Mongolia autonomous region.
A new company named Posco Kores Yongxin Rare Earth Metal Co. will be set up after the acquisition, with the consortium established by the above-mentioned South Korean firms holding 60 percent of the shares.
Chinese rare earth reserves, production and exportation volumes are the largest in the world. China's Ministry of Industry and Information Technology (MIIT) states that in 2008 Chinese rare earth output was 125,000 mt while its domestic rare earth consumption was 70,000 mt. World consumption in the same year was 130,000 mt.