China formed a major rare earth production corporation in one of its southeastern provinces to boost the industry's sustainable development, reports Xinhua News Agency.
Ganzhou Rare Earth Mineral Industry and some local rare earth companies, like Longnan Wanbao Rare Earth, merged to form the state owned Ganzhou Rare Earth Group Co. Ltd.
The new entity remains based in the city of Ganzhou, in Jiangxi province, where 36% of China's middle and heavy rare earth reserves are located. As the area's only prospector, it will mine, smelt, process and trade rare earths.
Last year, sales revenue for the industry reached 34 billion yuan ($5.44 billion), which amounts to one third of the nation's total revenues.
The government is encouraging more business mergers across a variety of sectors.
China's top rare earth producer, the Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co., plans to gain control of another 12 rare earth firms to form a megacompany.
Image: Brücke-Osteuropa via Wikimedia Commons