Mining giant Rio Tinto Group has increased its stake in an Australian-listed graphite developer to the maximum threshold before a mandatory takeover bid is required, amid China’s restrictions on exports of this crucial mineral.
Rio Tinto raised its shareholding in Sovereign Metals to 19.9%, according to a statement from the Perth-based company. Last year, Rio initially acquired a 15% stake in Sovereign for A$40 million to support a feasibility study for developing its Kasiya mine in Malawi. This mine is notable for its large graphite deposit, essential for electric vehicle batteries, and significant rutile reserves, a rare titanium oxide used in various industries, including skincare, paint, and aerospace due to its strength and lightweight properties. The move comes as the US and Europe express growing concerns over China’s dominance in the supply of these critical metals, especially after Beijing imposed export restrictions on graphite last year.
