The Inner Mongolia Baotou Steel Rare Earth Group, the largest rare earths producer in China, has purchased nine regional mining companies. The acquisition is part of the Chinese government's master plan to consolidate the mining sector, according to Reuters.
China produces over 90% of the rare earth metals of the world. This comprises of a group of 17 elements used in various applications in renewable energy, defense, telecommunications, and other sectors, the report said.
In a Friday statement to the Shanghai Stock Exchange, Baotou Rare Earth said it had inked a deal with the Inner Mongolian government to buy the nine upstream companies. Under the terms of the said transaction, Baotou Rare Earth will receive a 51% stake in each of those acquired companies at no cost, the report detailed.
Baotou Rare Earth will assist the miners in the integration of its management system. The group will also comply with stricter technological and environmental standards before the deals are completed. Moreover, the company will help the firms secure their production and export quotas, Reuters reported.
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