https://newsletter.mw.creamermedia.com
Building|Iron Ore|Power|Turbines|Turbines
Building|Iron Ore|Power|Turbines|Turbines
building|iron-ore|power|turbines-company|turbines-person

Rinehart takes stake in Lynas Rare Earths, shares jump

Gina Rinehart

Gina Rinehart

17th April 2024

By: Reuters

  

Font size: - +

MELBOURNE - Australia's richest person, Gina Rinehart, become a substantial shareholder in Lynas Rare Earths, the largest producer of rare earths outside of China, an exchange filing showed late on Tuesday.

The stake, taken by Rinehart's privately held Hancock Prospecting, is fuelling speculation of sector consolidation, after the magnate acted as a kingmaker in Australian lithium, and following merger talks between Lynas and the next biggest Western rare earths miner, MP Materials, earlier this year.

Lynas shares rose as much as 5.9%.

Rinehart and Hancock Prospecting have become substantial shareholders of Lynas with 5.82% voting power, according to the filing. Hancock took a substantial stakeholding in the US rare-earths producer MP Materials said earlier this month.

Lynas and MP Materials ended talks over a potential merger in February.

Lynas appreciates the support of its shareholders but does not comment on individual shareholders, a Lynas spokesperson said. Hancock declined to comment.

"We wonder whether Rinehart's emergence as a major shareholder in both Lynas and MP will prove a catalyst that encourages a merger," broker Canaccord said in a note on Wednesday.

"We could imagine clear synergies from such a tie-up: strategic re-orientations and cost savings that would enhance profitability at a time of subdued prices. A merged entity would also help to solidify a scaled Western rare earths champion to counter China’s dominance."

Lynas mines rare earths at its Mount Weld mine in Western Australia which are shipped to Malaysia for processing. It is building out processing facilities in the United States for the highly magnetic metals that are critical to wind turbines, electric vehicles and missiles.

Lynas investor Andy Forster of Argo Investments said Hancock's move was interesting "given she's clearly made a play across the whole space. She obviously wants to potentially have a seat at the table if there's any chance of consolidation."

"In the scheme of things for her, it's probably a relatively small investment," he said. "(Rare earths have) obviously been pretty depressed of late. If you're making a strategic long-term investment it's probably not a bad time to get in."

Prices for Neodymium have slumped by nearly three quarters since early 2022 when prices spiked following Covid-era border closures that crimped supply to dominant producer China.

Rinehart is Australia's richest person with a fortune made from iron-ore. Hancock has been aggressively acquiring stakes in lithium miners, thwarting a deal by top US lithium chemicals maker Albemarle for Australia's Liontown last year.

More recently she has turned her attention to rare earths. Hancock's investments include a 6.17% stake in Brazilian Rare Earthsand a 9.14% holdings in Arafura Rare Earths ARU.AX, according to LSEG data.

Edited by Reuters

Comments

Showroom

M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer
Magazine round up | 15 November 2024
Magazine round up | 15 November 2024
15th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.571 0.659s - 145pq - 2rq
Subscribe Now