The rare earth value chain represents a series of processing steps that sees high purity rare earth metals and oxides produced from mined ore. In order to establish a path to market, REE miners need to develop strategies to integrate with industrial groups that are proficient in downstream processing of intermediate rare earth concentrates to produce high-purity, industry-ready products. As China is the dominant participant in both rare earth supply and demand, most of the world’s leading rare earth companies are Chinese.

Greenland Minerals has been developing relationships with proponents of the rare earth industry in China over a number of years. In 2016, Shenghe Resources Holding Co Ltd became the Company’s largest shareholder and strategic partner. Shenghe is the second largest rare earth company by output and is rapidly growing with a strong focus on international markets. Shenghe has a global customer network located in Europe, North America, Japan, the Middle East and China. For these reasons, Shenghe represents a very strong development partner for the Kvanefjeld Project.

Shenghe brings leading processing technology, a global customer network, and a strong balance sheet to the Kvanefjeld Project.

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. For Shenghe, investment in Greenland Minerals is aimed to secure access to rare earth resources outside of China which are capable of supporting a range of rare earth businesses, facilitating long term growth opportunities.

Shenghe has been listed on Shanghai Stock Exchange since 2012 (600392.SS) and, as at 30 June 2018, had 1.35 billion shares on issue and a market capitalization of approximately RMB 27.8 billion or AUD 5.6 billion.

Largest shareholder is the Institute of Multipurpose Utilization of Mineral Resources [IMUMR], a State owned scientific research institute specialising in mineral resources.

Exclusively focused on the rare earths industry:

  • light and heavy rare earth ores and concentrates

  • rare earth separation capacity

  • rare earth metals, alloys and “end use” products

  • has an established international customer base for its products

International arm Sheng Kang Ning Mining Investment [SKN] was established to complement domestic rare earth activities.

Shenghe acquired an interest in Greenland Minerals in September 2016 and was part of the consortium that acquired Mountain Pass in June 2017.

Shenghe’s involvement in the Kvanefjeld project is very significant for both Parties

Shenghe’s investment in the Kvanefjeld project secures potential access to rare earth intermediate products outside of China in volumes sufficient to support a range of downstream rare earth businesses for the long term. The integration of Shenghe's industry knowledge and presence with the Kvanefjeld project will allow for the development of new internationally focused supply chains.

For Greenland Minerals the relationship with Shenghe provides potential access to:

  • TECHNOLOGY

  • CUSTOMERS

  • FUNDING