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Rio Tinto boosts stake in graphite miner as China curbs exports

16th September 2024

By: Bloomberg

  

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Mining heavyweight Rio Tinto Group has increased its shareholding in an Australian-listed graphite developer to the maximum allowed before it must make a takeover offer, as China limits exports of the critical mineral.

Rio has boosted its stake in Sovereign Metals to 19.9%, the Perth-based company said Friday. Rio first bought 15% of Sovereign last year for A$40-million to fund a feasibility study into the development of its Kasiya mine in Malawi.

That deposit contains graphite — an important component in batteries for electric vehicles — and is also one of the largest discoveries of rutile, a rare titanium oxide used in everything from skincare products and paint to aerospace and defense applications given its high strength and light weight. The US and Europe have raised security concerns about China’s domination of supply of the metals, which intensified after Beijing last year announced restrictions on graphite exports.

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Edited by Bloomberg

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