Highlights

• Baogang Group's new KYR-type rare-earth collector achieved 60.83% REE concentrate grade during a 34-day industrial trial at Bayan Obo, exceeding targets while reducing phosphorus content by 18%.
• The breakthrough flotation reagent strengthens China's rare-earth dominance by improving extraction efficiency, lowering downstream processing costs, and reducing reliance on foreign chemistries.
• If scaled commercially, the technology could increase Chinese rare-earth supply from the world's most important deposit, affecting global magnet raw-material pricing and Western diversification timelines.

Baogang Group says its in-house “KYR-type rare-earth collector” has completed a 34-day industrial trial with “major progress,” calling it a breakthrough in ore-beneficiation technology that should materially raise the efficiency of rare-earth extraction from the Bayan Obo deposit. The reagent—developed and manufactured by Baogang’s Mining Research Institute—was tested with Baogang’s Baiyun Processing Division in Bayan Obo’s rare-earth flotation circuit.

According to Baogang’s trial data, across 40 stable production shifts the weighted average REE concentrate grade reached 60.83%, surpassing the test target, while average per-shift concentrate output exceeded the target by 8.8%. The company also reports the phosphorus content of the concentrate fell by ~18% versus routine production—important because lower P reduces downstream smelting/separation costs and environmental compliance pressure. Baogang emphasizes the reagent maintained strong selectivity under different process-water conditions and varying ore characteristics, implying robustness for real-world plant variability.

Relevance of The News

If validated and scaled, higher grades, cleaner concentrates, and more stable recoveries at Bayan Obo—the world’s most consequential rare-earth orebody—could lift effective Chinese supply, lower unit costs, and tighten Beijing’s grip on midstream economics (separation, metals, magnets). An indigenous reagent also reduces reliance on foreign chemistries, reinforcing China’s self-reliance push. Better plant performance can ripple into magnet raw-material availability (NdPr, Dy, Tb), potentially affecting pricing power, contract terms, and timelines for Western diversification projects.

Baogang frames next steps around “quality-up, cost-down, efficiency-up”: raise concentrate grade and yield, further cut harmful impurities, reduce reagent cost, improve adaptability, and lower concentrate moisture—all to “consolidate Baogang and Northern Rare Earth’s leadership in the industry” and provide a stable feedstock base for China’s “strategic emerging industries.” Translation: expect continued process optimization and rapid adoption if economics hold.

REEx Take

This is not a mine expansion but a process-chemistry upgrade. If real and repeatable at scale, it’s a quiet force multiplier for China’s rare-earth dominance—boosting throughput quality and trimming downstream costs. Western supply-chain planners should watch for evidence of commercial rollout, third-party validation, and any signs of higher Bao-Obo concentrate shipments or improved separation yields that might influence 2026–2027 market balance.

Source: Baogang Daily (media of a state-owned entity). This report originates from a state-owned outlet and should be independently verified before business or investment decisions.

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