IXR has constantly stated that the West is vitally concerned that the supply of REE is secured by sourcing product from suppliers other than China.
Now, that sentiment is a given in the current climate.
We have been bombarded with posts from certain posters claiming that the product from Makuutu will be uneconomic at the current spot pricing of REE.
We have recently advised by IXR, and so many other REE manufacturers/producers, and start-ups, that the market is now in need of a pricing mechanism which is independent of China influence.
I see that we are now getting confirmation that the West is now coming to grips with these issues, and actually doing something about it.
We saw the US Govt implement certain restrictions banning Chinese REE products.
Witness the Aust Govt today, announcing the forced divestment of Chinese shareholding in Northern Minerals:
China-linked investors forced to offload Northern Minerals sharesYuxiao Fund and four associates with ties to Chinese conglomerates will be forced to reduce their shareholdings in Northern Minerals, a strategic rare earths miner, after the government decided the purchase was not in “our national interest”.
The Australian Financial Review reported in November that Singapore-registered Yuxiao was close to major Chinese groups including China Northern and Shenghe Resources. At the time, Northern Minerals’ former chief executive Nick Curtis raised suspicious share trading and
requested the Foreign Investment Review Board investigate last year.
Treasurer Jim Chalmers had already blocked Yuxiao from increasing its stake in Northern Minerals – which is developing the strategically important heavy rare earths Browns Range project in north-eastern Western Australia, near the Northern Territory border – to 19.9 per cent from 9.81 per cent.
On Monday, a spokesman for Mr Chalmers said the government had directed Yuxiao and its associates – British Virgin Island-registered Black Stone Resources, United Arab Emirates-based Indian Ocean International Shipping and Service Company along with investors Ximei Liu and Xi Wang – to sell Northern Minerals shares.
“The decision, based on advice from the Foreign Investment Review Board, is designed to protect our national interest and ensure compliance with our foreign investment framework,” the spokesman said. “Australia operates a robust and non-discriminatory foreign investment framework, and will take further action if required to protect our national interest in relation to this matter.”
(20min delay)