China Minmetals Confirms Merger That Will Form Rare Earths Behemoth

China has approved the formation of a rare earth behemoth by state-owned units including that of China Minmetals Corp. that may see it produce more than two-thirds of the country's output of the heavy variety of the materials essential for producing electric vehicles, consumer electronics, and military equipment.

China Minmetals Rare Earth Co. Ltd. (000831.SZ) said in its late Wednesday exchange filing (link in Chinese) that the new group will be controlled by the State-owned Assets Supervision and Administration Commission (SASAC) and be made of rare earth arms of state-run giants including its parent company China Minmetals, Aluminum Corp. of China, and Ganzhou Rare Earth Group Co. Ltd. The State Council has officially approved the merger.