Molycorp's mould-breaking deal with Neo Material Technologies sent its shares rocketing in New York on Friday and some industry observers say the tie-up creates a vertically integrated company that will transform the industry. Others see REE prices continuing to drop with some already down 70% and China's grip on the market undiminished – exports could double this year and domestic production continues to ramp up.
Molycorp and Neo Material Technologies Thursday announced the signing of a definitive agreement under which Molycorp will acquire Neo Materials for approximately CDN $1.3 billion. This will create one of the most technologically advanced, vertically integrated rare earth companies in the world.
China, the world’s largest supplier of rare earth, may almost double exports this year, meeting quotas set by the government as lower prices continue to stimulate demand.
The mining sector's bellwether companies were all beaten down on Monday after China's premier Wen Jiabao delivered a downbeat outlook for the world's second largest economy adding that there were "new problems" to deal with.
Two of Zambia's largest copper mines, Glencore's Mopani and Xstrata's Kansanshi were shut over the weekend; the former over health concerns and the other after workers downed tools.
A new survey by The Economist Intelligence Unit finds when institutional investors interested in frontier markets were asked to choose two regions out of five, two-thirds see Africa – projected to be the fastest growing region on the planet this year – as holding the greatest opportunity.
Thousands of protesters have been converging on Lynas Corporation's new rare earths processing facility in Malaysia according to reports. The Australian producer's website was also hacked over the weekend.
