September 28, 2010 (Chinavestor) Aluminum Corp. of China (NYSE:ACH), China's biggest producer of the industrial metal, said it will make investments of not less than $1.5 billion to acquire a majority stake of Jiangxi Rare Earth and Rare Metals Tungsten Group. The agreement was reached Sunday at the Expo Central China 2010.
Under the terms of the agreement, Aluminum Corp. of China (NYSE: ACH) will help Jiangxi Rare Earth and Rare Metals Tungsten Group develop rare earth minerals resources over the next three to five years.
Earlier this month, the state-run Xinhua news agency reported that Beijing is encouraging consolidation in the rare earth minerals industry.
Rare earths are used in many products, gadgets and critical cutting-edge technologies, and China has all but cornered the market, accounting more than 90% of global rare-earth production, according to MarketWatch.