Gina Rinehart, Hancock Prospecting, Lynas Rare Earths, News, Rare earths

Rinehart raises Lynas stake with $49m injection

Lynas Rinehart

Gina Rinehart’s Hancock Prospecting has snapped up a 5.82 per cent stake in Lynas Rare Earths for a cool $49 million, the latest in a string of rare earths moves by the magnate.

Earlier this month, US-based MP Materials revealed Rinehart had claimed a 5.3 per cent stake in the company.

In February 2024, The Australian Financial Review (AFR) speculated over a possible mega-merger between Lynas and MP Materials, backed by Rinehart.

The AFR said Lynas has since confirmed talks took place but have now ended, though did not rule out a possible deal in the future.

Since 2022, Rinehart has also held a 5.85 per cent stake in ASX-listed Brazilian Rare Earths and a 10 per cent stake in Arafura Rare Earths.

Lynas shares were through the roof today, with a 6.32 per cent jump signalling a potential incoming rare earths frenzy.

The company is tipped as the world’s only significant producer of separated rare earth materials outside of China.

Lynas’ Mount Weld mine in Western Australia is widely acknowledged as one of the world’s premier rare earths deposits.

With two major rare earths processing facilities in Kalgoorlie and Malaysia, Lynas is also building a new processing facility in the US.

Rinehart’s latest foray into the rare earths sector comes as the Federal Government announced more than $500 million in loans to two critical minerals projects in Queensland and South Australia.

With net-zero targets approaching and an entire industry poised to boom as emerging technologies require more and more minerals, Rinehart is well positioned to become a kingmaker in the sector.

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