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Old 02-05-2024, 05:49 AM
Sparty Sparty is offline
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Default Lynas talks with MP Materials

According to an article in the AFR: Australia's Lynas REE had talks re a merger with the USA MP Materials

Summary of the AFR's article:

Major points:
Lynas Rare Earths and MP Materials, the world's two biggest non-China rare earths producers, discussed a merger to challenge China's dominance.

The talks were initiated by Lynas and involved a cash-and-scrip offer, but ultimately fell through.
Both companies are looking to expand their downstream processing capabilities, particularly for heavy rare earths.

A merger would benefit from tax breaks being considered by the US for rare earths processing and magnet making.

China maintains dominance in the sector, controlling 90% of processing and 99.9% of heavy rare earths separation.

Minor points:
Nick Curtis, founder of Lynas, previously attempted a similar merger with MP Materials' predecessor.

He believes a combined entity would provide more confidence to Western customers.
Both companies suffer from falling share prices due to softer rare earths prices.
Analysts see strategic merit in a merger but highlight the lack of immediate solutions for heavy rare earths.


Could asx ASM fill the gap?

 

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Old 02-05-2024, 05:55 AM
Sparty Sparty is offline
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The Mountain Pass REE deposit has had a long and interesting ownership history, with several companies holding the reins over the years. Here's a breakdown:

Early years (1949-1952):

Discovered by prospectors looking for uranium.
First Ownership (1952-1977):

Molybdenum Corporation of America (MCA): They acquired the claims in 1952 and started small-scale production in 1952. Later changed their name to Molycorp.

Change of hands (1977-2002):
Union Oil (1977): Acquired Molycorp, including the Mountain Pass mine.
Chevron Corporation (2005): Merged with Union Oil, inheriting the mine.
Decline and closure (2002-2008):

Environmental issues and competition from China led to the mine's closure in 2002.
Chevron continued processing previously mined ore.

Revival and current ownership (2008-present):

Molycorp Minerals LLC (2008): A privately-held company formed to revive the mine, acquired it from Chevron.

MP Materials (2010): Successor to Molycorp Minerals, took the company public in 2010.

Current ownership (as of February 2024):

51.8%: American hedge funds JHL Capital Group and QVT Financial LP
8.0%: Chinese firm Shenghe Resources Holding Co. Ltd.
18%: Publicly traded shares.

So, the Mountain Pass REE deposit has been owned by Molybdenum Corporation of America/Molycorp, Union Oil/Chevron, Molycorp Minerals LLC, and MP Materials. The current ownership is a mix of American and Chinese entities.

 

Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content.
The information on this site is for information purposes only. Alternative-Energy.com.au is neither responsible nor liable for the accuracy of this data.

Comments on this forum should never be taken as investment advice.

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