Rare Earth Race: Key Minerals on the African Continent: Australian Mining Company DY6 Evaluates Malawi Rare Earth Project, Global Demand Continues to Rise

¬ Options include collaboration, divestment, or establishing a new rare earth entity

¬ As global demand continues to rise, investor interest in the industry is also increasing

Australian mining company DY6 Metals announced on Thursday that it would conduct a strategic assessment of its rare earth exploration portfolio in Malawi, following active investment interest from "industry participants." This assessment aims to seize the opportunities of strong growth in the rare earth market and maximize the project's value.

CEO Cliff Fitzhenry said, "Global attention on rare earth elements continues to heat up, and DY6 is actively positioning its Malawi assets to maximize shareholder value. This strategic assessment provides flexible options - whether through collaboration, deals, or establishing a dedicated rare earth division - all can seize this opportunity."

DY6's asset portfolio in Malawi includes the Tundulu and Machinga projects, which are about 30 kilometers from the Mount Sombwe (Mkango Resources) and Kankonde (Lindian Resources) deposits, as well as the Salambedwe project located in the south of the country.

As part of the review, the company has hired a rare earth expert to assess strategic options, including joint ventures, asset divestiture, or establishing a new entity focused on rare earths.

This timing is significant because the demand for key minerals used in electric vehicle and wind turbine permanent magnets continues to rise. Boston Consulting Group predicts that global demand will grow from 170,000 tons in 2022 to 466,000 tons by 2035.

DY6 is trying to benefit from this trend by exploring ways to unlock value from its Malawi projects, especially in the context of global supply chains diversifying away from Chinese dominance.

No timeline for the review has been announced yet, and details of investor engagement remain confidential. However, foreign interest in Malawi's rare earth industry is already beginning to emerge: at the end of September, the U.S. Development Finance Corporation signed a $4.6 million agreement to fund the Mount Sombwe project.

Source: ecofinagency

Original: www.toutiao.com/article/1847045652540428/

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