According to The Australian Financial Review, Lynas Corporation’s powerful Japanese backers have secured an even bigger and longer hold on the company’s rare earths production amid warnings China will use its supply domination as a weapon in the trade war with the United States.
The revised loan agreement also extends Japan’s priority rights by 13 years, from 2025 to June 2038, and comes a week after Lynas boss Amanda Lacaze said the Western world had been left badly exposed by its almost total reliance on China for rare earths.
JARE, a special purpose company set up by Japan Oil, Gas and Metals National Corporation and Sojitz Corporation, extended the term of its previous financing deal by a decade to 2030, lowered the interest rate from 3.75 per cent to 2.5 per cent and deferred some interest payments.
The loan extension sets out a timetable for total repayments of $US146.9 million ($210 million) by mid-2030 with principal repayments reduced to nominal levels up to 2025.
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