Rare earths are widely used in the aviation industry and manufacturing. China has a proven rare earth reserve of 52 million tonnes, accounting for about 58 percent of the world's proven reserves. Jiangxi has a prospected reserve of 9.4 million tonnes of heavy rare earth, or 40 percent of the country's total, and Ganzhou accounts for 90 percent.

The processing capacity of China Minmetals Rare Earth is 8,500 tonnes. When the company is listed on stock market in three to five years, according to the company's plan, the capacity will reach 13,500 tonnes, the world's largest.

With the 1 billion yuan of sales revenue from Ganxian Hongjin and Dingnan Dahua, the total sales revenue of rare earth products of China Minmetals was about 5 billion yuan last year. The figure is expected to double in five years, also making it the highest globally.

"As a result of rare earth industry restructuring, China Minmetals Rare Earth's ambition will be encouraging in the domestic industry given the current economic situation, said Lai Zhaotian, secretary general of the Ganzhou Rare Earth Association.

The creation of a large rare earth enterprise would enhance the added value of rare earth products, promote the efficient development and use of rare earth resources and the role of China's rare earth industry globally, he said.

(Xinhua News Agency February 27, 2009)