SHENGHE Resources Holding Co., a Shanghai-listed rare earth producer, plans to buy a 19.9 percent stake in Australian firm Peak Rare Earths to secure more overseas resources amid surging pries. The stake, which will be sold by Appian Pinnacle Hold Co. to Shenghe’s Singapore unit, will cost the latter around A$39.25 million (US$28 million), or A$0.99 per share, Shenghe said in a filing to the Shanghai Stock Exchange on Friday. Peak Rare Earths operates the Ngualla rare earth project in Tanzania with 18.5 million tons of reserves grading at 4.8 percent. It also plans to build a rare earth refinery in Tees Valley, Britain with annual rare earth products output aimed at 9,900-11,600 tons, according to the filing. Shenghe said it is focused on rare earths resources markets both at home and abroad. “If the project can be implemented successfully, it will further consolidate the company’s foundation and optimize its global business,” it said. Rare earths are a group of 17 minerals used in consumer electronics and military equipment. China is the world’s dominant producer of the metals. Shenghe currently has rare earths separation capacity of around 15,000 tons per year and processing capacity of 12,000 tons per year. The firm also has joint stake in rare earths mines in the United State and Greenland. The Chinese price of praseodymium-neodymium alloy, used to make super strong magnets used in electric car motors, doubled in 2021 and has already shot up more than 16 percent so far this year to 1.21 million yuan (US$190,296.45) per ton. Shenghe’s Shanghai-listed A shares closed up 0.06 percent at 17.69 yuan Friday and the stock had lost 9.83 percent as of Friday this year. (SD-Agencies) | 