Australia's Meteoric Resources ties up with Posco for Brazil rare earths project
The logo of POSCO is seen at the company's headquarters in Seoul, South Korea, July 20, 2016. REUTERS/Kim Hong-Ji/File Photo
July 29 : Australia's Meteoric Resources said on Wednesday it had signed an agreement with South Korea's Posco International to support development and financing for its Caldeira rare earths project in Brazil, sending its shares sharply higher.
Here are the details:
• Under the memorandum of understanding, Posco could source up to 30 per cent of Caldeira's rare earth output for as long as seven years, subject to further talks, due diligence and definitive agreements.
• Shares of the diversified Australian miner were up 8.6 per cent at A$0.19, while the broader benchmark index was up 1.1 per cent as of 0105 GMT.
• The partnership would help build a supply chain linking Brazil and South Korea for magnetic rare earths, which are used in electric vehicle motors, robotics, data centres and defence equipment. Posco is building a mine-to-magnet supply chain.
• The deal also allows Posco to explore a potential equity investment in Meteoric and support project financing through South Korean policy lenders, including the Export-Import Bank of Korea (KEXIM) and Korea Trade Insurance Corporation (K-SURE).
• The companies will also study technology cooperation and ways to help develop rare earth processing in Brazil.
