Australian regulators must soon decide on whether or not to check China’s increasing stranglehold on the rare earth minerals market.
China currently produces 93% of the world’s most rare and valuable elements, two of which are required for various green energy and military technologies.
In Australia, Lynas Corporation and Arafura Resources were ready to open mines last year which could account for a quarter of the world’s production, but after the GFC swept away financial backers, Chinese government-owned companies stepped in with cash.
Australian regulators have already approved the sale of 25% of Arafura, but have deferred a decision on the sale of 51.7% of Lynas until Monday.
Their decision could be influenced by what comes out of a conference in Beijing tomorrow, when it’s expected that the issue of China’s increasing restriction on access to rare earth minerals will be raised by Western governments and multinational corporations.
ASX Code: LYC
ASX Code: ARU
Charts from Market Analyser – click here to take a free software trial.
For more details on this news story: