BJZK rare earth neodymium iron boron permanent magnet company announced on the evening of March 21 that the company signed a letter of intent with Nanfang Rare Earth on the same day, and plans to hold a 5% share of Nanfang Rare Earth by increasing capital and shares; at the same time, the two parties plan to jointly invest in high-end rare earth magnets in Ganzhou. Materials project, joint venture to set up a high-performance sintered neodymium-iron-boron production company with a capacity of 5,000 tons per year, of which Southern Rare Earth accounts for no more than 34%.
Southern Rare Earth is China's largest medium and heavy rare earth production and operation enterprise. Through cooperation, the company will further guarantee the supply of rare earth raw materials (especially heavy rare earth). The investment is still in the planning stage.
The main content of the transaction framework agreement:
1. Nanfang Rare Earth agrees that BJZK will hold 5% of Nanfang Rare Earth's equity through capital increase and share expansion.
2. The two parties plan to jointly invest in a high-end rare earth magnetic material project in Ganzhou "Xinjingu" and jointly establish a high-performance sintered neodymium-iron-boron production company with a capacity of 5,000 tons per year, of which Southern Rare Earth accounts for no more than 34%. The third ring of China Science and Technology will determine the construction progress according to market demand, and the construction will be carried out in phases. The first phase of construction will not be less than 2000 tons / year. Southern Rare Earth will assist China Science and Technology Third Ring to select a site for the joint venture in Ganzhou and reach a land purchase intention.
3. Within 5 years after ZBJZK took a stake in Southern Rare Earth, Southern Rare Earth no longer accepted other rare earth permanent magnet companies as shareholders of Southern Rare Earth.
4. The two parties will simultaneously advance the above-mentioned cooperation matters, and the specific process and timing will be determined by the two parties through separate consultations.
5. Both parties will vigorously carry out business cooperation, and Southern Rare Earth will supply rare earth raw materials to BJZK at the most favorable market price.