Japanese trading house Mitsubishi has invested $324m. to increase its interest in Australia-based rare earths group Lynas Corp.
Mitsubishi now holds a 9.9% stake in Lynas after buying 170.1m. shares.
Mitsubishi will acquire the shares through its decision to swap $1.7bn of convertible bonds into an equity stake in US investment bank Morgan Stanley, which held shares in Lynas.
Lynas has already reached a supply deal with Japanese trading house Sojitz, with which it plans to supply 8,500 tpa REO over a ten-year period after work to double the plant’s capacity to 22,000 tpa REO has been completed.
Sojitz was seeking support from the Japan Oil, Gas and Metals National Corp. (JOGMEC) - a group formed to provide resource security to Japanese industries Ð to fund the expansion, which is expected to require $250m.
These deals highlight Japan’s need to secure rare earths...