Gelonhui, August 15, 丨 China Rare Earth (00769.HK) announced that on August 15, 2022, Yixing Xinweilicheng Rare Earth Co., Ltd., a subsidiary of the company, signed an agreement with Jiangsu Zhongyi Jinda Environmental Protection Industry Technology Research Institute Co., Ltd. on the content that Jiangsu Zhongyi will provide soil and groundwater maintenance services to the area where the Yixing Xinwei plant is located in Jiangsu Province and surrounding areas.

According to the agreement, Jiangsu Zhongyi is responsible for (i) maintaining the soil and groundwater in the area where the plant is located and the surrounding area; (ii) carrying out a comprehensive safety inspection of the plot area; and (iii) ensuring that the soil and groundwater quality in the plot area meets government supervision standards.

According to the terms of the agreement, Yixing Xinwei must pay 20% of the total service fee of RMB 296 million, or RMB 59.2 million, to Jiangsu Zhongyi within five working days after signing the agreement as an advance payment for such services. Thereafter, Yixing Xinwei must from time to time make proportional payments to Jiangsu Zhongyi according to the milestones of the different projects after the parties have signed and confirmed the progress of the project in writing. Once the advance payment is received, Jiangsu Zhongyi must immediately begin preparations to provide such services. It is anticipated that these services will be completed within two months of the commencement date.