China Unearths Major Rare Earth Deposit in Sichuan
China Rare Earth Group (CREG) has announced the discovery of a major rare earth deposit at the Maoniuping mine in Mianning County, Sichuan province. The site contains 4.96 million tonnes of rare earth oxide (REO), making it one of China’s largest light rare earth element reserves.
Strategic Ownership and National Supply Significance
The Maoniuping mine is operated by Sichuan JCC Rare Earth, in which CREG acquired a 51% stake in 2023. The remaining shares are held by Sichuan Shuyu Mining Investment and Mianning Investment Development. With a target production capacity of 30,000 tonnes of REO bastnaesite concentrate, the site is expected to play a strategic role in China’s domestic supply.
Demand Surge for Permanent Magnets
Demand for high-performance permanent magnets continues to rise. Market forecasts predict global consumption will grow from 102,500 tonnes in 2023 to 227,100 tonnes by 2028, reflecting a compound annual growth rate (CAGR) of 17.2%. The Maoniuping discovery will support this demand, especially in advanced technologies such as EVs, wind turbines, and defense systems.
CREG Faces Financial Headwinds Despite Discovery
Despite the discovery, CREG reported a 52.77% year-on-year revenue decline in the first half of 2024, totaling 1.15 billion yuan ($164 million). The company also posted a net loss of 244 million yuan, largely due to falling rare earth prices and excess inventory.
Expansion into Separation Technology
To strengthen its value chain, CREG is investing in rare earth separation projects. A new facility in Fujian province is under development and is expected to begin operations by late 2025.
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