Gina Rinehart’s Hancock Prospecting reignites Lynas takeover speculation after boosting MP Materials holding

Gina Rinehart is growing her influence on the Western World’s supply chain of rare earth elements by upping Hancock Prospecting’s stake in MP Materials. Hancock, Mrs Rinehart’s key investment vehicle, has increased its shareholding in the New York-listed MP Materials from 5.3 per cent to 8.5 per cent, according to Securities Exchange Commission filings. Hancock first emerged as a substantial shareholder of MP Materials in April and also owns a 7.1 per cent slice of ASX-listed Lynas Rare Earths. In February Lynas confirmed it had been mulling a potential merger with MP but says the talks ended without a formal proposal. Hancock became a major Lynas investor in April. A deal between Lynas and the Las Vegas-headquartered MP would have brought together the two biggest rare earths miners outside of China, which has a stranglehold on the market for the precious materials that are used in industrial magnets, electric vehicles and defence technology. MP operates the massive Mountain Pass rare earth mine in California, which the company says is responsible for 15 per cent of the world’s rare earths consumption. Lynas, which is the bigger company of the duo, has an $800 million cracking and leaching plant in Kalgoorlie that has been built recently to turn mined rare earth ores from the Mt Weld mine near Laverton into a carbonate. The Amanda Lacaze-led business also has a rare earths processing plant in Malaysia and is building a similar facility in Texas. Hancock has other rare earths investments beyond MP and Lynas. These include shareholdings in ASX-listed Brazilian Rare Earths and Arafura Rare Earths.