A strategic cooperation agreement arose from a meeting
between the two companies’ presidents in Xiamen
in September. It was signed earlier this month in Baotou,
Under the agreement, China Northern will guarantee to supply
Changting Jinlong, a subsidiary of Xiamen Tungsten, with
30-50 tonnes per month of praseodymium/neodymium oxide and
10-30 tonnes of neodymium oxide.
It will also supply Xiamen Tungsten with 40-50 tpm of
lanthanum and 30-40 tpm of lanthanum/cerium for its hydrogen
storage alloy powder project.
Meanwhile, Changting Jinlong will guarantee to satisfy all
the magnetic material needs for subsidiary companies of China
Northern and their purchasing demands for middle and heavy rare
earths, such as dysprosium metal, terbium metal, gadolinium
metal, holmium metal and other special rare-earth metals.
The agreement allows for the volumes of these supplies to
increase gradually depending on capacity expansion.
The agreement for cooperation between China Northern, the
biggest light rare earth producer in the north of the country,
and Xiamen Tungsten, the leading middle and heavy rare earth
producer, also includes research and development into hydrogen
storage material, rare earth metal production, and other
It will also help to stabilize market prices and strengthen
consolidation in China’s rare earth sector.
At the same time as it signed the agreement with Xiamen
Tungsten, China Northern also renewed its rare earth
concentrate supply contract with Inner Mongolia Baotou
This set a trading price for rare earth concentrate at
RMB14,000 ($2,109) per tonne exclusive of taxes and RMB16,380
per tonne with VAT, with effect from September 1, 2017.
The total volume to be traded each year will not exceed
The confirmed price in the first half of 2017 between the two
companies was only RMB9,250 per tonne exclusive of taxes and
RMB10,822.50 per tonne with VAT.