FIRB helps Japan shore up 25% of rare earth needs
2011-04-07 17:20:24.780 GMT

Japanese Government-backed firm Sojitz has gained approval to purchase a holding in Lynas Corporation, a rare earths mining group. The deal at $A2.12 per share will mean 8,500 tonnes per annum of the commodity will be exported to Japan. The Foreign Investment Review Board had previously blocked a similar move on Lynas by China Nonferrous Metal Mining Company; Original article by Mathew Murphy; The Sydney Morning Herald; 8 April 2011; page 4 Abstract by Palamedia / ABIX

David Fuller's view Apparently, more shares in Lynas have been created for this purchase. Existing shareholders, (I have a small position in Lynas) (weekly & daily), are also eligible to apply for some additional shares at $A2.12. I will take up this offer and subscribers with this position may also wish to do so.

China, which wanted to take over Lynas last year, has a similar deal. Until many more rare-earths mines are developed, companies such as Lynas will have no trouble selling their future production in a market where supplies are extremely tight, due to China's export ban for most of these metals.

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