China Nonferrous Metal Mining (CNMC) has terminated its $500 million equity investment into Rare Earths miner Lynas, after the Foreign Investment Review Board (FIRB) recommended changes to the conditions of the agreement.
The FIRB wanted CNMC to reduce its stake in Lynas to less than 50% and cut its board representation to less than half of the board.
The parties had already agreed to have an independent director control all marketing of the rare earth products.
Lynas could not be reached for comment when contacted by MINING DAILY this morning.
The investment proposal was announced on 1 May this year.
According to Lynas, it had approximately $7.5 million in the bank as of 23 September.
The company said it was finalising interim funding to ensure that it continues to have adequate working capital.
Lynas’ Mount Weld operation, near Laverton in Western Australia, is said to be the richest deposit of Rare Earths, or Lanthanides, in the world.
The company suspended work at the project in February this year and has since received all environmental approvals to build a concentration plant on site and an advanced materials plant in Malaysia.
Rare Earths are used in several green environmental products, from energy efficient compact fluorescent light bulbs to hybrid cars, automotive catalytic converters and wind turbine generators.