The demand for rare earth materials outside of China may quickly escalate as one of the largest producers of such materials in China has suspended production.
State-owned Aluminum Corp of China, or Chinalco, recently requested that its rare earth unit in southern China’s Guangxi region (Chinalco Rare Earth & Metals) suspend operations after inspectors found the company breached environmental rules – and more specifically, contaminating water sources.
China is the world’s largest producer of rare earth materials but African start-ups could benefit enormously from an increased demand for their product should China limit its production on the back of environmental shut-downs.
Rainbow Rare Earths Ltd (LON:RBW) is a mining company focussed on production from, and expansion of, the high grade Gakara Rare Earth Project in Burundi, East Africa.