The announcement came just hours after trade officials from the United States and China wrapped up two days of negotiations in London.
A leading trader of rare earth magnets in China has announced that authorities had granted export licenses for its shipments to several regions, including the United States.
JL MAG Rare-Earth disclosed the acquisition of the export licenses on June 10 through the Shenzhen Stock Exchange’s online platform, but did not specify the date when the licenses were issued.
“We have begun carrying out export declarations in accordance with the law, following the introduction of export control measures on medium and heavy rare earth materials and related items,” it stated in response to an investor’s inquiry.
JL MAG mentioned that it obtained export licenses for the United States, Europe, Southeast Asia, and other regions. The company added that its business is not involved in military equipment and that it will adhere to relevant laws and regulations.
The news sent the company’s shares soaring by 7.9 percent in late afternoon trading.
According to its official website, JL MAG is “the world’s leading enterprise in the global rare earth permanent magnet industry.” The company is based in Ganzhou, a city in northern China, where it operates heavy rare earth factories. It also has facilities in Inner Mongolia, the primary production area for light rare earths, as well as in Zhejiang Province, known for its rich resources in magnetic material processing and trading.
In the first quarter of this year, JL MAG sales to U.S. clients totaled 122 million yuan (approximately $17 million), representing about 7 percent of its overall revenue, the company said in the statement.
The news comes just hours after trade officials from the United States and China wrapped up two days of negotiations in London.
“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” U.S. Commerce Secretary Howard Lutnick told reporters after the second day of talks late on June 10.
U.S. negotiators’ comments echoed China’s summary of the negotiations published on the commerce ministry’s website.
By Dorothy Li
