Lynas Rare Earths to acquire Meteoric Resources for US$ 672 million

Australian mining company Lynas Rare Earths has announced an all-share agreement to acquire 100% of Meteoric Resources, valued at approximately US$ 672 million (A$ 968 million). The deal grants Lynas control of the Caldeira Rare Earth Project located in Caldas, Minas Gerais, Brazil.

The Caldeira project is a significant resource containing an estimated 1.6 billion tonnes of mineral resources, including neodymium, praseodymium, dysprosium, and terbium. These elements are critical for high-performance permanent magnets used in civilian and military technologies. The acquisition is expected to increase Lynas’s existing mineral resources by 79% and its ore reserves by 26%.

The transaction is subject to regulatory approvals, specifically under Brazil’s new mineral policy. The deal must be approved by the National Council for Industrialization of Critical and Strategic Minerals (CIMCE), which has the authority to oversee changes in control of companies holding strategic mineral rights.

While the deal is currently an all-share offer, some market analysts suggest potential competition for the asset, noting that South Korean conglomerate POSCO has previously established a strategic partnership with Meteoric. Lynas, which is the largest rare earth producer outside of China, aims to use this acquisition to diversify its supply chain and meet rising global demand.