Rare Earth Discovery: China’s CREG Uncovers Major Deposit in Sichuan

Rare Earth Discovery: China’s CREG Uncovers Major Deposit in Sichuan. The China Rare Earth Group (CREG) has announced the discovery of a significant rare earth deposit at the Maoniuping mine in Mianning County, Sichuan province. This site contains an estimated 4.96 million tonnes of rare earth oxide (REO), ranking among China’s largest deposits of light rare earth elements.

Strategic Ownership: The Maoniuping mine is owned by Sichuan JCC Rare Earth, in which CREG acquired a 51% stake in January 2023. The remaining shares are held by investment firms Sichuan Shuyu Mining Investment and Mianning Investment Development.

Global Demand Impact: As China’s second-largest light rare earth site, Maoniuping aims for a production capacity of 30,000 tonnes of REO bastnaesite concentrates. This discovery is crucial for bolstering China’s rare earth supply, particularly for high-performance permanent magnets in advanced technologies. Market forecasts indicate global consumption of these magnets could rise from 102,500 tonnes in 2023 to 227,100 tonnes by 2028, reflecting a compound annual growth rate of 17.2%.

Financial Challenges: Despite this discovery, CREG faced a tough first half of 2024, reporting a 52.77% year-on-year revenue drop to 1.15 billion yuan ($164 million) and a net loss of 244 million yuan, attributed to falling rare earth prices and excess inventory.

Future Expansion Plans: Looking ahead, CREG is investing in expanding its rare earth separation projects, with a new facility in Fujian province expected to begin operations by late 2025.