Rare earth resources Photo: VCG

State-owned rare-earth mining giant China Rare Earth Group Co has set up a joint stock company with two mining companies in South China's Guangxi Zhuang Autonomous Region with registered capital of 800 million yuan ($118.05 million), domestic news portal National Business Daily reported on Monday, citing information from Chinese business information platform Tianyancha.

The new company, formed by China Rare Earth Group Co and Shandong-based Ji'nan Yuxiao Group Co and Hainan-based Shenghe Resources (Hainan) Co, will focus on businesses including smelting of rare and rare-earth metals, sales of rare-earth functional materials, and manufacturing of non-ferrous metal alloys, among others, according to the report.

China Rare Earth Group Co was established in December 2021 in East China's Jiangxi Province, jointly founded by three companies - Aluminum Corp of China, China Minmetals Corp, Ganzhou Rare Earth Group Co and two research firms - China Iron & Steel Research Institute Group and Grinm Group Corp, according to the Xinhua News Agency.

The group focuses on research, exploration, smelting and deep processing of rare earths. Its business also includes downstream applications, equipment manufacturing, industrial incubation, technical consulting services and foreign trade.

Ji'nan Yuxiao Group Co was established in 1995, with registered capital of 200 million yuan and a headquarters in Ji'nan, East China's Shandong Province. The company said that it is a world-leading global enterprise integrating the mining and utilization of various mineral resources such as zirconium-titanium, rare earths, and graphite, with business ranging from shipping and mineral deep processing to mineral exploration.

The company has 31 major projects, including 13 overseas projects already in operation, 12 domestic projects in operation and a number of other operations. As of the end of 2025, the company's net assets exceeded 10 billion yuan, with an annual output value exceeding 10 billion yuan, according to a post on its website. The company said that it holds more than 20 mining concessions in Mozambique with proven zircon-titanium metal resources exceeding 100 million tons and graphite metal reserves exceeding 100 million tons.

Shenghe Resources is a specialist company of mixed ownership engaging in the extraction and trade of rare earths. Its main products include rare-earth concentrates, rare-earth metals and rare-earth catalytic materials, along with other rare and scarce metals, and its products find wide application in new energy, new materials, energy conservation and environmental protection, aerospace, defense and other fields, according to the company's website.

Wu Chenhui, an industry analyst, told the Global Times on Monday that the establishment of this new joint stock company could enable more flexible operation through the cooperation of state-backed and private capital. Guangxi is also rich in rare-earth metal deposits.

China Rare Earth Group Co, as a state-owned enterprise, holds a large number of upstream mines, while the private mining companies can enrich the cooperation with their ready business channels and refining technologies. By integrating resources, they can adopt more business strategies, gain clearer direction, and enjoy greater operational flexibility, Wu said.

With more input into resource exploration, Guangxi has recorded solid gains in strategic mineral reserves.

Xinhua reported in May 2024 that through a new round of minerals exploration during the 14th Five-Year Plan (2021-25) period, backed by 395 million yuan, 34 strategic mineral deposits were newly discovered in Guangxi, adding to the reserves of strategic mineral resources such as indium, antimony, tin, manganese, and rare earths.

Against the backdrop of smoldering risks from overseas mines amid global geopolitics, closer cooperation between mining companies on domestic mineral reserves offers a different approach and enhances mineral security, Wu said.