Rare earths hopeful Hastings Technology Metals backed by China magnet maker

Chinese rare earths player JL Mag has bought a substantial slice of Perth aspirant Hastings Technology Metals and a seat on its board for $7 million.

The deal gives JL Mag a 9.8 per cent stake in Hastings, which it confirmed was below the 10 per cent threshold that would require Foreign Investment Review Board approval.

It comes as Hastings attempts to rally financial support for its Yangibana rare earths development in WA’s Gascoyne region. Proceeds from the investment will go towards the project.

The rare earths hopeful was among companies caught up in a string of mining construction cost blowouts over the past three years. Costs to develop its flagship have steadily crept up to the $1b mark.

“I am very pleased to welcome JL Mag as a long-term, strategic investor in Hastings,” executive chair Charles Lew said.

“JL Mag’s position as the world’s number one producer of high-performance rare earths permanent magnets makes it a highly valued partner for Hastings as we move the Yangibana Rare Earths Project forward into production.”

JL Mag’s Hong Kong subsidiary will take up 19.6 million new shares in Hastings at 36¢ apiece. Proceeds will go towards development of the project, Hastings said.

Mining billionaire Andrew Forrest provided about $150m in debt funding to Hastings in 2022.

Once debt funding is in place Hastings plans to start buildings its rare earths treatment plant at the end of this year. It would produce 37,000 tonnes per annum of mixed rare earth concentrate once up and running from the first half of 2026.

China has long-dominated global supplies of rare earths, which are used in batteries and magnets.

Shares in Hastings closed the day up nearly 3 per cent at 34¢.