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Rumours of China’s push to block rare earths exports to the US...

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    Rumours of China’s push to block rare earths exports to the US spurs rally in ASX stocks

    https://unauthorised investment advice/resources/rumours-of-chinas-push-to-block-rare-earths-exports-to-the-us-spurs-rally-in-asx-stocks/

    Speculation that China may ban rare earths exports to the US has seen investors flock to ASX-listed rare earths players.Greenland Minerals & Energy (ASX:GGG) led the charge with its share price climbing nearly 54 per cent to around 11c over the past week. It’s up 53 per cent since the start of 2019.Arafura Resources (ASX:ARU) jumped over 27 per cent to 6.5c and has gained 38 per cent since the start of the year.

    Heavyweight Lynas Corp (ASX:LYC) and Alkane Resources (ASX:ALK) both shot up nearly 27 per cent to $2.41 and 26c, respectively.Earlier this week China’s President Xi Jinping visited the JL MAG Rare-Earth factory, which manufactures magnetic rare earth elements, in Ganzhou.Also on this factory tour was Vice Premier Liu He, who has been leading trade negotiations with the US, US trade representative Robert Lighthizer and US treasury secretary Steven Mnuchin.These events have seen a raft of media reports surmise that Xi might be about to ban the export of rare earths to the US to “cripple” its opponent’s tech and military industries as well as force US President Donald Trump to back down.

    Alkane managing director Nic Earner reckons this could be the “big shot in the arm” the industry needs.Earner told * it might lead to big manufacturing houses or industrial chemical producers shifting away from Chinese supply and looking elsewhere for their needs.“That would be the big shot in the arm for ASX-listed rare earths producers — but only a few,” he said.“Only the ones that are not related to China through significant investment and/or part of their processing route.”Subscribe to our daily newsletterJoin our small cap Facebook groupFollow us on Facebook or TwitterAlkane wants to bring its Dubbo rare earths project into production, but first needs to lock in buyers for its end product.

    Earner said the China-US tiff was exactly what the company needed to propel its project forward.“The issue is selling zirconium and rare earths — so neither of those do we have an offtake in,” he explained. “We’re constantly in discussions. A lot of people are trying to read the tea leaves of the market before they commit.“But apart from that we are absolutely ready to rumble.”Alkane owns all the land, has completed all the engineering and pilot plant work, has locked in all the necessary mining and environmental licences and just needs to press the go button.“So we need some of this trade, China environmental concerns, we need that to land and for the investment community to make a decision where it’s moving in order for us to get the required offtake and subsequent investment in that project,” Earner said. .......
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