NTU recently announcement Jien Mining Pty Ltd (Jien Mining) was satisfied with its due diligence on Northern Minerals. Subject to finalisation of the outstanding conditions for the proposed placement to Jien Mining being satisfied, Jien Mining intends to proceed with the transaction (investing $49.5M into NTU). The key outstanding conditions for completion are FIRB and PRC Regulatory Approvals.
Lets hope the FIRB does not repeat mistakes of the past. The FIRB ruined Lynas when they rejected their proposed Chinese partner back in 2009
http://www.smh.com.au/business/china-quits-rare-deal-with-lynas-20090924-g4re.html
I believe that decision alone set Lynas up to fail.
Instead of being aligned with the world leaders in rare earth production and supply - the FIRB decision set Lynas up to compete with a monopoly. Total stupidity on the part of the FIRB and has set the Australian rare earth sector back 10 years in my opinion.
China’s monopoly is also intellectual. Take Peak Resources (PEK) for example which prior to finding a Chinese partner had completed their Preliminary Feasibility Study and economic assessment based on a concentrate grade of 16.3% - the best PEK could achieve at the time.
The new Chinese partner (arriving post Preliminary Feasibility Study) then has Peak ore sent to leading Chinese Rare Earth Institutes where they were able to produce a 52.9% rare earth concentrate REO
That's more than a 300% increase in concentrate grade, and it has transformed the economics of the PEK project.
Similar Chines intellectual property will be passed onto NTU should FIRB approval be forthcoming.
If FIRB approval is not forthcoming I will commence lobbying my local Member of Parliament for a complete overhaul of the FIRB process. The disaster of Lynas should be enough to make them commence a review.
I firmly believe had the FIRB approved the Chinese partner for Lynas, then Chinese intellectual property would have been passed onto Lynas and today Lynas would be a leader in rare earth supply. As it is Lynas will now be lucky to survive.
If the FIRB want's Australia to have a strong and vibrant rare earth mining industry it has to permit Chinese joint venture partners taking major position in Australian rare earth explorers.
(20min delay)