Very interesting: ‘Australia to benefit from Rinehart’s rare...

Very interesting:
‘Australia to benefit from Rinehart’s rare earths battle with China

Gina Rinehart has taken advantage of the slump in the value of rare earths companies to buy four key strategic equity positions that provide a potential springboard for Rinehart to become a major force in this free world electrification

Governments led by America, Australia and other Western nations have been disappointed that major miners turned their back on the potential of rare earths. For the majors it meant investment in complex mineral processing and taking on the might of China.

As a cash rich family business, Gina Rinehart had can set aside those fears and take a long view of the likely rewards from achieving global leadership of an essential free world industry. At this stage Rinehart has outlaid “petty cash” (less than $US100m) to gain key footholds, but the investments make no sense unless they are the first stage of much bigger strategic moves to unite the industry to compete with China.

In the case of nickel, electric vehicles and solar panels the Chinese strategy is to reduce the price substantially to make non Chinese production uneconomic for its western rivals. And there are early signs of success with BHP pulling back from nickel. Gina Rinehart’s capital backing, plus US and Australian government help, can ensure that the western world’s rare earths industry will not be bullied by China…..’o