ArticleInteresting news bite, just came across it came out yesterday.
Perhaps in an effort to reduce their dependence on Chinese rareearths resources, a group of Japanese and South Korean investors andsteelmakers are acquiring a 15% interest in Brazilian rare earths firmCompanhia Brasileira de Metalurgia e Mineracao (CBMM) for $1.83 billion.Rare earths stocks are reacting well to the news as the Rare Earths Stocks Index is up 3%.
South Korea’s Posco (PKX),the National Pension Service, Japan’s Nippon Steel, Sojitz and JFE willacquire the stake in CBMM. The Japanese firms will acquire 10% of CBMM,a deal values the unlisted Brazilian company at $12 billion, accordingto Reuters and that may be the catalyst lifting rare earthsstocks higher today as investors may be speculating about what types ofpremiums would be paid for rare earths producers that are currentlypublic companies.
Posco, one of the world’s largest steelmakers, and the NationalPension Services, will each pay $312 million to acquire 5% of CBMM.
Shares of Molycorp (MCP), the largest U.S.-based rare earths miner are up 3% today and have soared 80% in the past three months. Canada’s Avalon Rare Metals (AVL) is surging 4% as is Rare Element Resources (REE). Market Vectors Rare Earth/Strategic Metals ETF (REMX), the major rare earths ETF, is up 1% on the day.
Investors can track the Rare Earths Stocks Index for performance trends and a suite of other metrics at tickerspy.com.