(Yicai Global) Jan. 17 -- A subsidiary of Huahong Technology, a Chinese maker of renewable resources recycling equipment, has secured long-term supply contracts for rare earth oxides from two large Chinese buyers worth CNY119.2 million (USD18.8 million) a month based on current prices. It comes just a week after the unit became a supplier to US tech giant Apple.

Ji’an Xintai Technology will provide 100 tons of rare earth oxides a month to rare earth product producer China Minmetals Rare Earth and 32.5 tons a month to rare earth permanent magnet materials maker Ningbo Fonne New Materials, the Wuxi-based parent firm said on Jan. 14.

No details were given about the transaction value, but the current market price of the two main rare earth oxides praseodymium oxide and neodymium oxide is around CNY900,000 (USD141,614) a ton, according to commodities trading platform 100PPI. This brings the value of the contract to CNY119.2 million a month.

Just last week Xintai agreed to supply California-based Apple with 50 tons of praseodymium oxide and neodymium oxide made from recycled materials every month over a 12-month period in a transaction worth around CNY540 million (USD84.8 million).

Ji’an, eastern Jiangxi province-based Xintai has an annual capacity of 4,000 tons of rare earth oxides and 2,800 tons of rare earth permanent magnetic materials a year, accounting for 17.5 percent of China’s refined recycled rare earth products, according to company data.

Huahong’s share price [SHE:002645] was trading down 1.22 percent at CNY25.14 (USD4) as of 1:30 p.m. China time today.

Editor: Kim Taylor