BY MELANIE BURTON
MELBOURNE- Australian-listed miners of heavy rare earths rallied on Monday, shrugging off major selloffs across other markets, on bets Western governments would renew their push to develop a separate supply chain after top producer China set down export controls.
Shares of Lynas Rare Earths the world’s top rare earths producer outside China, rallied 5 percent as did Meteoric Resources which has a project in Brazil, while shares in Australia-based heavy rare earths developer Northern Minerals surged 9.5 percent.
China placed export restrictions on rare earth elements on Friday as part of its sweeping response to US President Donald Trump’s tariffs, squeezing supply to the West of minerals used to make weapons, electronics, and a range of consumer goods.
Rare earths are a group of 17 elements and heavy rare earths are those with higher atomic weights, including dysprosium and yttrium, which are generally less abundant and more valuable.
“The news from China highlights Lynas’s strategic capabilities which are currently underpriced by the market,” said Barrenjoey analyst Dan Morgan.
China produces around 90 percent of the world’s rare earths, and the export curbs affect shipments to all countries, not just the US They also include not only mined minerals but magnets and other finished products that will be difficult to replace, analysts said.
Lynas said it was closely watching global developments as it pushed forward with its production plans.
“We are very pleased that the commissioning of our new heavy rare earth separation circuit is planned for this quarter,” a spokesperson said.
