Lynas is in the green on a red day. Could this be the reason?
China deploys rare earths as weapon in trade war with Trump
Beijing said last Friday it will tighten controls on exports of seven types of rare earths. The country is by far the world’s biggest supplier of the minerals, which comprise 17 elements in the periodic table.
The list of rare earths announced last Friday includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. But two of the most common — neodymium and praseodymium — weren’t included. They are used in powerful magnets that are one of the best-known applications for rare earths.
“Unlike the seven rare earths selected, these are more readily available outside China, which could make any controls less impactful,” said David Abraham, an affiliate professor at the Boise State University in Idaho. “They may have been excluded to preserve the option of future controls.”
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Judging by Lynas's share price jump today, while most are in the red, it has been determined that safe jurisdictions such as Lynas are safe havens for rare earth operations. However, what about projects like AR3? Which is an ionic-clay hosted rare earths, as opposed to the more complicated hard rock projects. Therefore, it could quickly feed into the supply system if needed. Especially, the high value terbium and dysprosium which Lynas doesn't favour.
All IMO, DYOR, GLTA(patient)H
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