State-owned Guangdong Guangsheng Nonferrous Metals Group  has  obtained  China  Securities  Regulatory Commission  approval  to  list its tungsten and rare earth assets on theShanghai  Stock Exchange through a share-asset swap with Shanghai-listed Hainan Xingye   Polyester   Co.  Ltd.,  the  listed  chemical  processor announced on Sept. 2.

    According to the company's back-door listing plan, Guangsheng Nonferrous will sell   its   interests   in  14  tungsten  and  rare  earth-related subsidiaries,  worth  approximately RMB 267.66 million ($39.13 million), in return for 36 million new shares issued by Xingye Polyester at a per-share price  of  RMB  6.68  ($0.98)  and  the  entire  assets  of Xingye Polyester,  which  will  be  further traded for a total of 88.76 million shares held by three Xingye Polyester shareholders.

    Upon completion of the share-asset swap, Guangsheng Nonferrous will holda total  of 124.76 million shares, or a controlling 50.02 percent stake,in Xingye Polyester.

    Through  the  share-asset  swap,  the listed company will obtain various assets held  by  Guangsheng  Nonferrous' 14 subsidiaries, including five tungsten  mines,  which contain a combined 1.15 million tons of tungsten ore reserves  and  are  expected  to  produce  a  combined 1,400 tons of tungsten  dioxide  grading  65 percent in concentrate form this year, as well as   two   rare   earth   mines,  which  are  expected  to  produce approximately 1,000 tons of rare earth dioxide in 2008.

    "Guangsheng  Nonferrous  currently  holds  two  mining rights in Meizhou City's Pingyuan  county  to  a  combined 11,600 tons worth of rare earth dioxide  reserves,  and  intends to acquire the remaining two rare earthmining rights  in Guangdong Province - in Shaoguan City's Xinfeng county and Heyuan  City  -  to  become  the province's sole official rare earth miner,"  an official with Pingyuan Huaqi Rare Earth Industrial Co. Ltd.,a Guangsheng Nonferrous rare earth subsidiary, told Interfax.

    The official said Guangsheng Nonferrous also plans to construct two rare earth smelting  bases in Xinfeng and Heyuan, and a rare earth processing facility in Heyuan.

    Guangsheng Nonferrous also plans to further secure its tungsten reserves through  deep  exploration  and  acquisitions,  and  construct  tungsten processing facilities that produce high value-added tungsten products.

    In addition to the tungsten and rare earth assets, Guangsheng Nonferrous also owns  exploration  rights  to  the  Shilu  copper  deposit  and the Houpo'ao  silver  deposit,  both  the largest of their kind in Guangdong Province.  The  company  is  applying  for  mining  rights to the copper deposit,  while continuing a feasibility study on the development of the silver deposit.

    State-owned  Guangdong  Guangsheng Asset Management Co. Ltd., Guangsheng Nonferrous'  parent,  also  controls  Shenzhen-listed  Zhongjin  Lingnan Nonfemet  Co.  Ltd.,  which  specializes  in  lead  and  zinc mining and smelting.