Rare earths: The Australian angle
Rare earths: The Australian angle
By Mark Thirlwell - 20 October 2010 9:26AM
As a quick follow-up to my previous posts on rare earth elements, it's worth noting that Australia has been part of this story.
Two Australian companies – Lynas Corporation and Arafura Resources – are potentially important players in the REEs market. Interestingly, when the onset of the GFC saw both companies lose access to financing, two state-owned Chinese enterprises stepped up with bids to buy stakes in both companies. In May 2009, Australia's Foreign Investment Review Board approved a proposal by East China Mineral Exploration & Development Bureau (ECE) to acquire 25% of Arafura; the company's shareholders approved the A$23 million investment last September.
Things worked out a little differently with Lynas. After twice postponing a decision on the Chinese bid, the FIRB reportedly asked the China Nonferrous Metal Mining Group to reduce its planned ownership to below 50% (the Chinese company had initially wanted a controlling stake) and to restrict itself to a minority of board seats. At this point, the Chinese bidder pulled out of the deal.
(H/t: The Interpreter)
By Mark Thirlwell - 20 October 2010 9:26AM
As a quick follow-up to my previous posts on rare earth elements, it's worth noting that Australia has been part of this story.
Two Australian companies – Lynas Corporation and Arafura Resources – are potentially important players in the REEs market. Interestingly, when the onset of the GFC saw both companies lose access to financing, two state-owned Chinese enterprises stepped up with bids to buy stakes in both companies. In May 2009, Australia's Foreign Investment Review Board approved a proposal by East China Mineral Exploration & Development Bureau (ECE) to acquire 25% of Arafura; the company's shareholders approved the A$23 million investment last September.
Things worked out a little differently with Lynas. After twice postponing a decision on the Chinese bid, the FIRB reportedly asked the China Nonferrous Metal Mining Group to reduce its planned ownership to below 50% (the Chinese company had initially wanted a controlling stake) and to restrict itself to a minority of board seats. At this point, the Chinese bidder pulled out of the deal.
(H/t: The Interpreter)
Labels: REE
posted by Patrick Henry at 03:16
0 Comments:
Post a Comment
<< Home