MP Materials Stock Spikes After JV Deal With Saudi Arabia's Flagship Mining Company

[Hol]

MP Materials stock is up more than 6% heading into the cash open after the company announced a rare earth refinery joint venture with Saudi Arabia's flagship mining company.

MP, the U.S. Department of War, and Saudi Arabia’s state mining giant Maaden have announced a joint venture to build a rare earth refinery in Saudi Arabia, marking one of the first major projects under a new U.S.–Saudi framework for critical mineral cooperation, the company wrote in a release this morning.

The venture is intended to diversify and stabilize the global rare earth supply chain, reducing reliance on adversarial sources while supporting manufacturing and defense needs in both countries and their allies.

…

The structure of the venture ensures U.S. oversight, with MP and the DoW jointly holding a targeted 49% stake and Maaden holding at least 51%. The DoW will provide non-recourse financing for the U.S. share, while MP contributes technical expertise and global sourcing and marketing capabilities. MP is also in discussions to collaborate on magnet manufacturing in Saudi Arabia.

MP Materials Stock Spikes After JV Deal With Saudi Arabia's Flagship Mining Company | ZeroHedge

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[Margery]

As such things do. The rare earth stuff has to come from and be refined into a useful state from somewhere. That is a highly toxic process both mining and refining leaving a lot of toxic waste.

It is vital for things like computers, cellphones, sophisticated batteries, and modern weaponry. In other words modern communications, transport and armed services. Hence the need for the Dept of War to be involved.

Reading the article further states that the rare earths will come from Arabia but also "elsewhere".

I presume that the Saudi people won't do the dirty work, they import what is generally looked on as slave or near slave labour from elsewhere.

Sadly for those the Saudis already employ, safety standards and pay are almost non existent.

As is the current supply situation from China where they use slave labour without hesitation.

But we need that stuff for modern life. And the current situation had way too much dependence on China baked into the mix. No easy answers.

At least some of the toxic process can occur in Saudi Arabia although where they dump the waste might be interesting to know.

 

[Hol]

As such things do. The rare earth stuff has to come from and be refined into a useful state from somewhere. That is a highly toxic process both mining and refining leaving a lot of toxic waste.

It is a toxic extraction. It amazes me how God created the earth in such a way the highly toxic materials can remain harmless under the earth —until they are dug up. Once some exposure occurs then unanticipated events, even rainwater, spread everything around. Mines can accidentally open up ground water, aquifers, etc. and other nearby rare earths can incidentally comingle making a toxic stew. The safer way would be to burrow underground and mine out the minerals with robotics.

Have you heard any more about Trump’s rare earth mining in the Ukraine?

where they dump the waste might be interesting to know.

Most surface waste pits remain problematic for decades. It’s very expensive to close mines. It seems that some companies prefer to dump waste in a deep watery grave.

 

[mattfivefour]

It’s very expensive to close mines. It seems that some companies prefer to dump waste in a deep watery grave.

Profit trumps scruples in this fallen world. Every day of the week.

 

[Margery]

Have you heard any more about Trump’s rare earth mining in the Ukraine?

No but there is a pretty solid rumour circulating about a deal he's working out with Russia over Ukraine- without Ukraine's input. Lavrov finally showed up after his long absence.

Why I mention that? Well the biggest best areas for those rare earth minerals happens to be in the area that Ukraine is hanging onto and Russia is trying to claim.

Lavrov is Russia's Foreign Minister and second only to Putin in the food chain (even higher than Medvedev). His disappearance coincided with some odd stuff happening in Russia, power struggles etc.

For the moment he's back in view and I think it was Axios reporting on some 20 plus point plan that Russia is working on with Witkoff. Russia was sending smoke signals that they felt "heard" whatever that means.

It's Russia (even when it's Ukraine). It's a bit opaque at times.

I suspect word will be leaking out more in the coming days. I expect Ukraine and the EU to have smoke signals too- coming out their collective ears.