News: PEK Shenghe Resources to buy 19.9% of Australia's Peak Rare Earths, page-5

Its grid lock. China has its claws into Tanzania big time debt wise. They could probably start taking infrastructure if they really turn the screws. Tanzania not willing to piss the Chinese off. China says dont issue the SML to PEK therefore Tanzania says whatever the last excuse was....PEK not agreeing to terms yada yada yada.


I think Appian know they cant liquidate their stake without pushing the PEK price down. So they can literally see their funds are stuck. This way they exit clean and at 20% above mkt price..

So the Chinese have a blocking stake. Next question is will a western company take a similar size stake??

Essentially do the west let this go? What will happen with offtakes? Because if they start going to China forget teeside. And perhaps Tanzania sees this as to be in their interest. But its complicated. Because its not Chinese clay based rear earths and Tanzania probably doesnt trust Chinese debt as they once did.

Hopefully China and the west look to Tanzanias best interests and dont treat Tanzania as a proxy. British govt may come out and insist that offtakes go to the west. Its a loss for the west but its a queit one.