Shenghe Resources "Refers to" China's Rare Earth

Wang Quangen, the second largest shareholder of Shenghe Resources, entrusted part of its equity holdings to China Rare Earth Co., Ltd., a subsidiary of China Aluminum Corporation under the Central Company. What does this mean? The Shanghai Daily reporter learned from the interview that Shenghe Resources and rare rare earths in China are planning to fully integrate the rare earth resources in Sichuan Province. The purpose of this equity trusteeship is to achieve closer cooperation between the two parties. Judging from the regulations of Shenghe Resources, rare rare earths in China have been given the right to appoint directors and individual proposals. In the process of integrating rare earth resources led by rare rare earths in China, the platform value of Shenghe Resources is expected to further increase.

Shenghe Resources announced today that the company received notification from Wang Quangen, the second largest shareholder, that he signed an “Equity Custody Agreement” with rare rare earth in China on November 3. The agreement provided Wang Quangen to hold the company’s limited-sale conditions of 11.48 million shares. Shares (3.05% of the company's total capital) are hosted by China's rare earths.

The announcement said that the agreement was in response to the State Council's policy call for promoting the sustainable and healthy development of rare earth industries, implementing the spirit of the rare earth special meeting of the State Council, and promoting the integration and development of China's rare earth rare earth Sichuan rare earth industry group.

According to the review announcement, Shenghe Resources and rare rare earths in China have been planning deep cooperation. On February 28 this year, Shenghe Resources Holding's subsidiaries Shenghe Rare Earth Co., Ltd. and China Rare Earths, Youyan Rare Earth New Material Co., Ltd. and Sichuan Hanxin Mining Development Co., Ltd. (Shenghe Rare Earth Hosting Company) integrated rare earth industries, and rare earth minerals. Strategic cooperation in development, smelting and separation, etc. Signed the Letter of Intent for Cooperation and agreed to be guided by the “Guidelines for the Formation of Large Rare Earth Enterprise Groups.” China Rare Earth Relatives Holdings, Shenghe Rare Earth as the second largest shareholder, all parties jointly established a joint venture As an integrated platform, the company follows the principle of marketization and integrates rare earth mines and smelting and separation companies in Sichuan Province. The platform is China Aluminum Sichuan Rare Earth Co., Ltd., China rare rare earth holds 33.5% of the shares, Leshan Shenghe subscribed 24.4 million yuan capital contribution, holding ratio of 30.5%.

According to the letter of intent for cooperation, each shareholder later put related rare earth mineral rights and other assets into the joint venture company, and gradually integrated other rare earth enterprises in Sichuan Province. Shenghe Resources's participation in the integration of rare earth resources in Sichuan Province is no suspense. The doubt left by the market is: In the integration platform Alcoa Sichuan Rare Earth Co., Ltd., Shenghe Resources only serves as an equity shareholder, or can be further used as a major Integrated platform? If we want to play more roles, how can we balance the relationship with rare rare earths in China?

According to the custody announcement, rare rare earths in China are required to exercise the relevant rights of shareholders within the legal and Shenghe Resources Articles of Association. In accordance with the company's articles of incorporation of Shenghe Resources, in addition to the voting rights at the general meeting of shareholders, the shareholders holding 3% of its shares also have the right to propose nomination of candidates for directors and other proposals to the general meeting of shareholders. Some brokerage analysts said that the equity escrow should be an important part of multi-depth cooperation, through which the rare rare earths in China will be put on the chariot of Shenghe Resources, and follow-up does not rule out the assignment of rare rare earths to the directors of Shenghe Resources. Or directly initiate a proposal and directly lead the next step of integration.

China Rare Earth Co., Ltd. is affiliated to China Aluminum Corporation. In August of this year, the Ministry of Industry and Information Technology issued a document. The Aluminum Corporation of China uses its rare earth rare earths as its main body of integration, focusing on the integration of rare earth mining, smelting, separation and comprehensive utilization enterprises in Guangxi, Jiangsu, Shandong and Sichuan provinces (regions). This means that Chinalco will become a large rare earth group that spans both the northern and southern rare earths and the eastern and western regions of the country. The actual controller of Shenghe Resources is currently the Ministry of Finance, which holds 20.14% of the shares through the Institute of Comprehensive Utilization of Minerals of the Chinese Academy of Geological Sciences. The proportion of shares held by the company is not high, which also provides the basis for China Aluminum to step in and guide the integration of the next step. .