China’s CREG Discovers Major Rare Earth Deposit in Sichuan

China’s CREG

China Rare Earth Group (CREG), the country’s largest state-owned rare earth enterprise, has announced the discovery of a significant rare earth deposit at the Maoniuping mine in Mianning county, Sichuan province. The site contains an estimated 4.96 million tonnes of rare earth oxide (REO), making it one of China’s largest deposits of light rare earth elements.

The Maoniuping mine is owned by Sichuan JCC Rare Earth, a domestic producer of rare earth materials. CREG became the largest shareholder of the company in January 2023 after acquiring a 51% stake from Jiangxi Copper, a non-ferrous metals producer. The remaining stakes are held by investment firms Sichuan Shuyu Mining Investment and Mianning Investment Development.

Strategic Importance of Maoniuping and Global Demand

Maoniuping is China’s second-largest light rare earth site, with a target production capacity of 30,000 tonnes of REO bastnaesite concentrates. The discovery is expected to contribute significantly to China’s rare earth supply, which is crucial for high-performance permanent magnets used in various advanced technologies. Market projections suggest that global consumption of these magnets could grow from 102,500 tonnes in 2023 to 227,100 tonnes by 2028, driven by a compound annual growth rate of 17.2%.

However, CREG reported a challenging first half of 2024, with a 52.77% year-on-year drop in revenue, amounting to 1.15 billion yuan ($164 million), and a net loss of 244 million yuan due to declining rare earth prices and large inventories purchased at higher prices.

Looking ahead, CREG is also investing in expanding rare earth separation projects, with a new facility in Fujian province expected to start operations by the end of 2025.