Rinehart takes 5.8% stake in rare earths miner Lynas
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The news: Gina Rinehart’s Hancock Prospecting has emerged with a major stake in rare earths producer Lynas.
The numbers: Lynas confirmed late on Tuesday that Hancock lifted its stake to 5.82%, with the bulk of the shares being purchased over the last week.
Ahead of the announcement, Lynas shares lost over 15% of its value amid subdued prices.
Lynas shares were up 5% to $6.40 in early trading on the ASX.
The context: Billionaire Rinehart’s interest in Lynas has fuelled speculation that previously unsuccessful merger talks with US-based rival MP Materials could be revived.
Hancock announced earlier this month it had acquired a 5.3% stake in MP Materials in a sign of confidence in the burgeoning rare earths market. The two companies have emerged as the world’s two biggest non-China producers of rare earths, with both receiving funding from the US Department of Defense for expansion plans.
The source: ASX announcement
