off-the-wire

Australia's Rinehart takes stake in Lynas Rare Earths, shares jump

Kitco Media
By Reuters
Published:
Updated:
Reuters
MELBOURNE, April 17 (Reuters) - Australia's richest person, Gina Rinehart, become a substantial shareholder in Lynas Rare Earths, (LYC.AX), opens new tab the largest producer of rare earths outside of China, an exchange filing showed late on Tuesday.
The stake, taken by Rinehart's privately held Hancock Prospecting, is fuelling speculation of sector consolidation, after the magnate acted as a kingmaker in Australian lithium, and following merger talks between Lynas and the next biggest Western rare earths miner, MP Materials, earlier this year.
Lynas shares rose as much as 5.9%.
Rinehart and Hancock Prospecting have become substantial shareholders of Lynas with 5.82% voting power, according to the filing. Hancock took a substantial stakeholding in the U.S. rare-earths producer MP Materials (MP.N), opens new tab, MP said earlier this month.
Lynas and MP Materials ended talks, opens new tab over a potential merger in February.
Lynas appreciates the support of its shareholders but does not comment on individual shareholders, a Lynas spokesperson said. Hancock declined to comment.
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