China National Shares plans to invest 510 million in the joint development of rare earth

China National Color Co., Ltd. (000758) announced on the evening of July 7 that the company and Yixing Xinwei Group will jointly invest in the establishment of China National Rare Earth Group (Guangdong) Co., Ltd. China National Rare Earth has a registered capital of 1 billion yuan, the company has invested 510 million yuan, and its shareholding ratio is 51%.

The announcement said that after the completion of the RMB 1 billion investment, CNG Rare Earth is expected to control the domestic 17,000 tons/year of rare earth separation capacity and become the leading rare earth separation enterprise in China, which is conducive to obtaining the government’s industrial support.

The company stated that the purpose of this investment is to integrate the rare earth separation capacity of Jiangsu and Guangdong, and realize the large-scale operation of rare earth separation. The investment has no impact on the company's operating results for 2011, and the impact on the operating status of the company in the coming year will be determined by the progress and business status of the company's integration of rare earths.