Make Kitco Your Homepage

China Minmetals Rare Earth starts new mining project in Hunan

Kitco News

BEIJING, June 11 (Reuters) - China Minmetals Rare Earth, one of the country's largest rare earth miners, has begun construction of a new mining project in the central province of Hunan, the company said on Tuesday.


The project in Jianghua county is expected to begin production in February 2020, with estimated output of 1,800 tonnes a year of rare earth oxides, China Minmetals told Reuters by email.


The deposit has ore reserves of 104,300 tonnes, according to the company website.


Prices of rare earths, a group of 17 elements used in a wide-range of products from lasers and military equipment to consumer electronics, have hit multi-year highs following a flurry of reports that Beijing could use them in its trade war against Washington. Rare earth exports by China, which supplied 80% of imports by the United States from 2014 to 2017, fell 16% in May from a month earlier. China Minmetals Rare Earth, a subsidiary of state-backed China Minmetals Corp , produced 4,101 tonnes of rare earth oxides in 2018, up 19% from a year earlier, according to a company filing to the Shenzhen Stock Exchange.


Shares in China Minmetals Rare Earth rose 10% to 16.87 yuan on Tuesday, a near two-week high.


($1 = 6.9169 Chinese yuan renminbi)


(Reporting by Muyu Xu and Shivani Singh; editing by Richard Pullin)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.