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Baogang denies new rare earth company plan

(chinadaily.com.cn)
Updated: 2009-09-25 16:10

Inner Mongolia BaoTou Steel Rare-earth Hi-tech Company announced on September 25 that they have no plans to co-establish a rare earth company with China Investment Corporation (CIC), the China Securities Journal reported.

Previous reports said the CIC was negotiating with Baogang Group to co-establish a new company for developing and reserving rare earth materials. The registered capital of the new company would have been as high as one billion yuan ($146.46 million), with CIC holding 80 percent of its shares.

But according to the announcement, the CIC did discuss future cooperation with BaoTou Steel Rare-earth Hi-tech during their visit to Baotou in mid-September, but that these discussions did not lead to any formal agreements.