Jiangxi Copper Corporation and Sichuan Mining Investment Group have recently signed agreement to jointly invest 1 billion yuan for developing China's second-largest rare earth deposit in Sichuan province in southwestern China.

Earlier in June of 2008, Jiangxi Copper bought the mining right of the 2.94-square-kilometer Maoniuping mine in Mianning County of Sichuan province with 430 million yuan. In August of 2008, Jiangxi Copper Sichuan Rare Earth Company was registered with a capital of 40 million yuan for developing the Maoniuping mine.

In the recent agreement, Jiangxi Copper and Sichuan Mining Investment Group will co-invest 1 billion yuan into the company, after which Jiangxi Copper controls 56 percent of the venture while Sichuan has 44 percent.

The mine has estimated reserves of 1.57 million metric tons.

Jiangxi Copper Corporation, the parent company of Jiangxi Copper (600362.SH;0358.HK), is the largest copper producer in China.

China has the most rare earth reserves in the world. About 80 percent of the world's consumption of rare earth is produced by China every year.