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Rare earth sustainability efforts get a boost as second largest rare earth company Shenghe Resources joins REIA

April 01, 2021

The Global Rare Earth Industry Association (REIA) is pleased to announce that Shenghe Resources Holding Co. Ltd has joined as a member. Shenghe Resources Holding Co. Ltd is a public company exclusively focused on mining and processing rare earth ores, and producing high purity rare earth oxides, metals and alloys along with a range of rare earth products.
Shenghe is the second largest rare earth company by output and is rapidly growing with a strong focus on international markets. Shenghe has been listed on Shanghai Stock Exchange since 2012 (600392.SS) and as of 30 June 2018, had 1.35 billion shares on issue and a market capitalization of approximately CNY 27.8 billion or EUR 3.6 billion.

Applauding Shenghe’s willingness to join REIA and take an active part in its efforts to develop a sustainable and transparent rare earth value chain, Dr Badrinath Veluri, REIA President said “this is a good opportunity that a major upstream player has committed to uphold the sustainability standards that REIA, the only rare earth global association, puts forth”.

The global association, founded last year, is building a global sustainability framework to be rolled out in the coming months and plans to use an integrated blockchain tool to boost transparency, said Veluri, who works as a magnetic materials specialist at water pump maker Grundfos in Denmark.

Shenghe states that they grew in China, but holds its vision global as they have subsidiaries established in USA, Australia, Singapore, and Vietnam.

REIA’a vision align with Shenghe’s core objectives, supported by technical innovation, insisting on the principle of mutual benefit and environmental friendliness. Shenghe Resources— endeavor to orderly and harmoniously explore global RE resources and to prompt sound and green industrial development.

REIA has been in discussion with companies along the “value chain” from miners to makers of consumer goods. These include the auto industry, now shifting increasingly towards electric vehicles, whose motors usually require rare earth-based magnets. “This is a good opportunity for the downstream players especially the auto-industry to play an active role in rare earth sustainability and circular economy”, said Dr. Nabeel Mancheri, REIA’s Secretary General.   

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