China swoops on Australian rare earths junior

China’s stranglehold on the world’s rare earths supply may be about to grow after a Chinese investor was understood to be close to buying a strategic stake in Australian listed company Peak Rare Earths Limited.

Chinese rare earths producer Shenghe Resources was poised to spend more than $39 million buying a 19.9 per cent stake in Peak under a proposed transaction with Peak’s biggest shareholder; private equity firm Appian Capital.