Shenghe Resources Proposes $248 Million to $271 Million Rare Earth Processing Stake Sale to China Rare Earth Group

Highlights

• Shenghe Resources proposes transferring 51% equity in four rare earth separation businesses to state-owned China Rare Earth Group for RMB 1.66–1.81 billion ($248–271 million).
• Shenghe retains minority ownership, management nomination rights, and an 80% profit distribution arrangement across the four processing subsidiaries.
• The four businesses generated approximately RMB 1.76 billion in revenue and RMB 332 million in net profit in the first half of 2026.
• The deal may free Shenghe capital to finance international mineral projects, including Tanzania's Ngualla rare earth deposit.
• Western manufacturers remain exposed as new mines alone cannot deliver supply security without qualified separation and downstream processing capacity.