(Yicai Global) March 2 -- Shares of Rising Nonferrous Metals jumped to a nearly two-year high after the Chinese mining firm said that it will invest CNY1.3 billion (USD200.9 million) to build a permanent magnet project in southern China to increase its output of the material used in electric cars, robots, and maglev trains.

Rising Nonferrous Metals' stock price [SHA:600259] soared by 10 percent to CNY43.99 (USD6.80) this morning, the highest since June 2019.

The company will construct the plant in the Guangzhou Airport Economic Zone to make 8,000 tons of high-performance neodymium magnets each year, the Guangzhou-based company said in a statement yesterday, citing a deal with a district administration. The project is expected to be finished in 30 months.

The production base will realize an annual output value of about CNY2.5 billion and pay roughly CNY152 million (USD23.5 million) in taxes each year. The project will help increase the added value of the rare earth industry, the statement added.

Rising Nonferrous Metals, which has four rare earth mining permits in Guangdong province, can separate as much as 14,000 tons of mid-heavy and heavy rare earth elements each year, according to its website.

Editor: Emmi Laine, Xiao Yi