Neo Material Technologies Enters Cooperative Agreement With Minmetal Rare Earth (Ganzhou) Companyadmin
Neo Material Technologies Inc. announced that the Company’s 90% owned Chinese joint venture Jiangyin Jia Hua Advanced Material Resources Co., Ltd (“JAMR”) has entered into an agreement to provide distribution, management and various technical services to Minmetal Rare Earth (Ganzhou) Co., Ltd (“MREG”). MREG is a newly formed company led by China Minmetals Corporation (“Minmetals”) which is consolidating the separation capacity of Ding Nan Da Hua Advanced Material Resources Co., Ltd (“DAMR”) and Ganxian Hong Jin Rare Earth Co Ltd. in Jiangxi Province.
Under the terms of the agreement, JAMR will continue to act as distributor for products manufactured by DAMR, now a part of MREG, and continue to provide DAMR with management and various technical services for an initial term of five (5) years for the distribution of product and three (3) years for management and technical services subject to annual renewal thereafter. This arrangement enables JAMR to play an active role within the consolidated group, with access to additional separation capacity and raw materials. As part of the agreement, JAMR’s investment in DAMR of approximately 66 million Renminbi will be repaid during the fourth quarter of 2008.
“Minmetals is a leader in the global mining and minerals industry. We look forward to working closely with them in their efforts to consolidate heavy rare earth mining and separation capacity as well as develop downstream applications in Jiangxi Province. Establishing such a partnership in China has been a key objective for Neo. MREG’s ability to access raw materials, combined with our expertise and track record of developing advanced rare earths and global markets will mutually benefit Neo and Minmetals in servicing the increasing demand for high quality rare earth elements,” stated Constantine Karayannopoulos, President and Chief Executive Officer.
Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications through its Magnequench and AMR Performance Materials business divisions. These innovative products are essential in many of today’s high technology products. Magnequench’s neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips. The Company is headquartered in Toronto, Canada and has approximately 1,300 employees in 15 locations, across 10 countries.