Aluminum Corp of China (Chalco) plans to invest 400 million yuan ($64.4 million) in China Rare Earth Holdings (CREH), the smelter announced on Tuesday August 4.

Chalco’s board of directors has approved the investment plan and Chalco will inject 62.63 million yuan into CREH as registered capital.

The rest of the investment would be as capital reserves for the CREH, according to Chalco.

CREH is a controlling subsidiary of Chinalco, which is the controlling shareholder of Chalco.

The investment is still pending approvals from other major shareholders of CREH, the state asset watchdog and CREH’s shareholders meeting, according to Chalco.

Earlier this year China scrapped the export tax on rare earths.

Linda Lin