Rising trade tensions between the United States and China have sparked concerns that Beijing could leverage its dominant position as a supplier of rare earths.
No value was put on the agreement but the Chinese company will also have the right to purchase 3,000 tonnes of rare earth products from the project within three years of production.
The importance of rare earths, has been thrust into the spotlight in recent weeks as China mulls whether to use its position as the world’s dominant supplier as a counter in its trade war with Washington.