China Northern Rare Earth: Two subsidiaries to make deals with related parties respectively
2019-08-02 17:30:10 [Print]
China Northern Rare Earth announced on late 1 August that its subsidiary Northern Rare Earth Pingyuan (Inner Mongolia) Magnesium Aluminum New Material Technology Co., Ltd. (Pingyuan Magnesium Aluminum) plans to sell steel scrap and Al-Si-Mn alloy to Inner Mongolia Baogang Corporation Co., Ltd. (Baogang Corporation). Meanwhile, its wholly-owned subsidiary Inner Mongolia Rare Earth Ovonic Metal Hydride Co., Ltd. (Metal Hydride) plans to make deals for goods and services with related parties including Inner Mongolia Baogang Metal Manufacture Co., Ltd. (Baogang Metal) and Baogang Group Metallurgical Rolling Manufacture Co., Ltd. (Baogang Metallurgical).
According to the announcement, Pingyuan Magnesium Aluminum would purchase steel scrap and then sell to Baogang Corporation after processing and sell its Al-Si-Mn alloy to the company directly. Dealing prices shall be determined on the average market prices and the total transaction value is not expected to exceed RMB300 million (USD43.25 million) in 2019.
In addition, Metal Hydride plans to authorize Baogang Metallurgical to process the sourced aluminum ingot, steel scrap, etc. into micro-carbon ferroaluminum based on Baogang Metal's requirements and then sell them to Baogang Metal. In 2019, the total trading value between Metal Hydride and Baogang Metal is not expected to exceed RMB85 million (USD12.26 million) while the service transaction value between Metal Hydride and Baogang Metallurgical is not expected to exceed RMB10 million (USD1.44 million).
According to the announcement, Pingyuan Magnesium Aluminum would purchase steel scrap and then sell to Baogang Corporation after processing and sell its Al-Si-Mn alloy to the company directly. Dealing prices shall be determined on the average market prices and the total transaction value is not expected to exceed RMB300 million (USD43.25 million) in 2019.
In addition, Metal Hydride plans to authorize Baogang Metallurgical to process the sourced aluminum ingot, steel scrap, etc. into micro-carbon ferroaluminum based on Baogang Metal's requirements and then sell them to Baogang Metal. In 2019, the total trading value between Metal Hydride and Baogang Metal is not expected to exceed RMB85 million (USD12.26 million) while the service transaction value between Metal Hydride and Baogang Metallurgical is not expected to exceed RMB10 million (USD1.44 million).
Silico-manganese 60/14 EXW China
Unit:RMB/mt
China silicomanganese producers' sales to production ratio statistics by province by month
Unit: %
