China Knowledge reported that Shanghai listed Rising Nonferrous Metals Share Co Ltd which is principally engaged in the mining, processing and distribution of nonferrous metal has signed a cooperation agreement with Inner Mongolia Baotou Steel Rare Earth Hi Tech Co Ltd to seek a further development in rare earth industry.

The two companies will establish a strategic alliance on fundraising as well as developments in the downstream processing and technology sectors. Baotou Steel Rare-Earth recently released a forecast of 450% net profit growth for the first half of this year.

The company attributed the sharp increase to the government's policies to encourage the development of the rare earth sector, the faster restructuring in the domestic rare earth sector, strong demand for rare earth, and the increase in rare earth prices.

Rising Nonferrous located in southern Guangdong Province is one of the largest heavy rare earth producers while Baotou Steel Rare-Earth, located in northern Inner Mongolia Autonomous Region is China largest light rare earth producer in terms of output capacity.

Currently, China supplies approximately 95% of the world total rare earth.

(Sourced from China Knowledge)