Baotou Tianhe Magnetics Technology's Subsidiaries to Build Rare Earth Projects in Inner Mongolia; Shares Jump 5%

Two of Baotou Tianhe Magnetics Technology's subsidiaries plans to implement rare earth projects in China's Inner Mongolia.

Baotou Tianhe New Materials Technology will construct a production line and plant that will manufacture high-performance rare earth permanent magnets, components, and equipment for 100 million yuan, according to a Shanghai Stock Exchange filing on Wednesday.

The other subsidiary, Baotou Tianzhihe Magnetic Equipment Manufacturing, will also build production lines that will manufacture high-performance rare earth permanent magnet production equipment, such as one-step forming floating fully automatic magnetic field presses, continuous vacuum sintering furnaces, single sintering furnaces, intelligent high-efficiency jet mills, and fully automatic continuous strip casting furnaces. The project costs 50 million yuan, the Chinese rare earth permanent magnet materials producer said.

The company's shares jumped over 5% in recent trade.

China has issued rare earth magnet export permits to at least four producers, signaling a partial easing of last month's export curbs, Reuters reported Wednesday.

Baotou Tianhe Magnetics secured a license for Volkswagen, sources said, after the automaker lobbied Beijing, according to the report.

Zhongke Sanhuan, Baotou INST Magnetic New Material , and Earth-Panda Advanced Magnetic Material also received permits, mostly for clients in Europe and Vietnam, Reuters wrote.

The move comes days after a US-China trade truce.

Baotou Tianhe Magnetics Technology completed the establishment of its subsidiary in China's Inner Mongolia Autonomous Region after obtaining the business license, according to a Shanghai Stock Exchange disclosure on Tuesday.

The subsidiary, Baotou Tianhe New Materials Technology, has a registered capital of 10 million yuan and manufactures magnetic materials and electronic specialty materials, the Chinese rare earth permanent magnet materials producer said.

The company's shares closed 4% lower.