On November 14, Chinese state-run metal and mineral trading company China Minmetals Corporation (Minmetals) officially launched construction of its rare earth project in Jianghua Yao Nationality Autonomous County, Yongzhou City, Hunan Province, China. Its newly-created subsidiary Minmetals Rare Earth Jianghua Co. will be responsible for the project.
Jianghua has abundant mineral resources, such as rare earth, iron, tungsten, tin, copper and lead. The new rare earth project of Minmetals, costing a total investment of RMB 2.08 billion ($329 million), is expected to be put into production by the end of 2013. The new company will implement intensive rare earth processing programs and create a rare earth industrial park. By 2015, the total production value of its rare earth processing business is expected to reach RMB 10 billion ($1.58 billion), with an anticipated pre-tax profit of RMB 1.5 billion ($238 million).