Australia's Meteoric Resources ties up with Posco for Brazil rare earths project
Australia's Meteoric Resources ties up with Posco for Brazil rare earths project July 29 (Reuters) - Australia's Meteoric Resources MEI.AX said on Wednesday it had signed an agreement with South Korea's Posco International 047050.KS 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% 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% at A$0.19, while the broader benchmark index .AXJO was up 1.1% 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.
(Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)
((Roshan.Thomas@thomsonreuters.com;))
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Australia's Meteoric Resources ties up with Posco for Brazil rare earths project