Would give the Chinese raw materials giant a controlling stake in Peak’s Tanzanian rare earth project.
Chinese rare earth giant Shenghe Resources is eyeing the next move in its international expansion. According to media reports, its subsidiary, Chenguang Rare Earth, plans to acquire 100% of the equity in Peak Rare Earths Limited, an Australian-listed company developing the Ngualla Rare Earth Project in southern Tanzania.
This proposed acquisition builds on Shenghe’s investment in July 2024, when it secured a 50% stake in Ngualla Group, the holding company for Peak’s 84% interest in the Ngualla project (we reported). Even before this development, Shenghe had already acquired a 19.9% stake in Peak Rare Earths and secured exclusive rights to the project’s entire rare earth concentrate production for seven years.
The acquisition is expected to undergo regulatory scrutiny in both Australia and China. It may trigger foreign investment reviews due to the sensitive nature of rare earths in the context of national security. Australia has previously blocked two Chinese investments in its rare earth sector and has since taken a more cautious stance on foreign direct investment in critical minerals (we reported).
Photo: iStock/naruedom
