Highlights
- Baogang Group is China’s largest steel enterprise in Inner Mongolia.
- It has significant rare earth production capabilities.
- The company collaborates closely with Bank of China to support its industrial development and strategic expansion.
- Baogang Group plays a crucial role in China’s rare earth complex.
- It controls a substantial portion of global rare earth processing.
Meng Fanying, deputy to the National People’s Congress and chairman of Baogang Group meets met with Hu Kun, Party Secretary and President of Bank of China Inner Mongolia Branch. (opens in a new tab) The two sides communicated and exchanged views on deepening the connection between banks and enterprises and expanding areas of collaboration. Rare Earth Exchanges monitors Baogang Group activity.
Company Background
Also called Baotou Iron and Steel Group, Baotou Steel or Baogang Group is an iron and steel state-owned enterprise in Baotou, Inner Mongolia, China. It was reorganized in 1998 from Baotou Iron and Steel Company established in 1954. It is the largest steel enterprise in Inner Mongolia. It has a large production base of iron and steel and the largest scientific research and production base of rare earths in China.
Meng Fanying, Rare Earth Power
The company is a large production base of iron and steel and the largest scientific research and production base of rare earth in China.
It is also the most important industry and the top performing enterprise in the Inner Mongolia Autonomous Region with total sales revenue hitting l0 billion yuan (USD$ 1,383,106,730). Baotou Steel can produce 55 varieties and 1,112 specifications of steel products such as slab, heavy rail, and seamless pipe.
In the rare earth industry, Baotou Steel can produce over 7,000 tons of oxide converted hydrometallurgy rare earth products, and 80 varieties and 200 specifications of rare earth products. Baotou Steel can produce 26 varieties and 28 specifications of metallurgical coke and coking by-products.
Its subsidiary company, Inner Mongolia Baotou Steel Union (SSE (opens in a new tab): 600010 (opens in a new tab)), was established and listed on the Shanghai Stock Exchange in 1997.
Discussions
The deputy to the National People’s Congress and chairman welcomed Hu Kun and his delegation to Baosteel Group and expressed her gratitude to Bank of China Inner Mongolia Branch for its long-term attention and support to Baosteel Group. Of course, access to capital remains critical for such a large, integrated endeavor. The heart of the China rare earth elements (REE) complex, such meetings are newsworthy.
Meng Fanying informed the banking lead that presently, Baosteel Group, in accordance with the deployment requirements of the state and the autonomous region, focuses on improving the modern industrial system, developing new quality productivity, and striving to enhance the ability of industrial coordinated development, and serves as the main force in the construction of the “two rare earth bases”, contributing more Baosteel strength to the autonomous region’s two major events.
Of course, in China, the market mechanism remains front and center, in parallel; however, the top-down mandates from the Party and the State not only rival but interplay with market forces.
Inexorable Intertwined State-owned Enterprises
As Baogang Group reports, the diversified industrial development and business layout adjustment of Baosteel Group cannot be separated from the help and support of financial institutions. It hopes to continue to strengthen communication and docking with the Bank of China Inner Mongolia Branch to promote cooperation between the two sides at a higher level and in a wider range of fields. This means the capital from this state-owned financial institution will be key to executing the rare earth complex (and, of course, other mining and steel operations).
Big Player
Baogang Group’s clout in this part of China cannot be denied. The executive banker, Hu Kun said that Baosteel Group, as the largest industrial enterprise in the Inner Mongolia Autonomous Region, has made important contributions to the high-quality economic and social development of the Inner Mongolia Autonomous Region.
Baosteel Group is a key customer of Bank of China Inner Mongolia Branch. The two sides have always cooperated closely and achieved fruitful results. In the next step, Bank of China Inner Mongolia Branch will focus on the actual high-quality development of Baosteel Group, give full play to the advantages of financial services for the real economy, and provide strong financial support for Baosteel Group’s diversified industrial layout and the development of new strategic industries.
Xing Liguang, member of the Party Committee and chief accountant of Baosteel (Group) Corporation, the secretary of the board of directors and heads of relevant departments and units of both sides were present at the meeting.
Why do we report on such events? Because these state-backed firms drive the rare earth element complex, the Sino-oligopoly controls about 90% of REE processing worldwide.
Daniel
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