China’s rare earth export curbs push Australian miner to fast track Africa project as nations step up diversification plans
- Concerns over China’s intentions were heightened when sources said Beijing could restrict exports to US, a move that could hurt the weapons-making industry
- China dominates global rare earth production, but a new Export Control Law took effect in December, limiting the export of sensitive materials and technology
Amid geopolitical concerns over China’s plans to curb exports, Australian rare earth miner Ionic Rare Earths, which has previously fielded interest from governments, has secured commitments to raise A$12 million (US$9.3 million) in new funding to fast track its Makuutu project in Uganda.
The concerns over China’s intentions were heightened on Monday when Chinese sources indicated that Beijing could restrict the export of rare earth metals to the United States, a move that could hurt its weapons manufacturing industry.
The Australian-listed Ionic, which told analyst S&P Global last year that it had been approached by global entities representing government interests, said China’s continued restrictions on rare earth metal exports have ignited strong interest in production outside China.
Recent policy to prioritise and stockpile critical and heavy rare earths for Chinese domestic supply means less exports
“Makuutu, we believe, will become an increasingly important strategic asset as the implemented export restrictions in critical and heavy rare earth from China take effect,” managing director Tim Harrison said in a statement to the Australian Securities Exchange after Ionic’s call for funding was oversubscribed by both local and foreign institutional investors.