London, September 8th (Argus) - USA Rare Earth (USAR), an American rare earth producer, has completed the acquisition of Brazilian producer Serra Verde, adding one of the few operating heavy rare earth mines outside Asia to its growing mining-to-magnetic materials business.
This $2.8 billion deal was announced in April this year, enabling USAR to directly obtain dysprosium and terbium supplies from Serra Verde's Pela Ema operation in Brazil, which is expanding its production capacity to 6,400 tons of rare earth oxides per year.
This transaction is the latest step in USAR's efforts to establish a complete rare earth supply chain covering mining, separation, metals, and magnetic materials. In March this year, the company fully acquired the Round Top project in Texas and in September last year, it acquired the British-based metal and alloy producer Less Common Metals.
Since the Chinese government tightened export controls on several rare earth products, the demand for non-Chinese heavy rare earth supplies has become increasingly prominent. In recent weeks, the prices of oxide dysprosium and oxide terbium in the United States have risen as buyers seek raw materials before China's suspension of some restrictions on medium and heavy rare earths in November.
The expansion of USAR largely relies on government support. The production of Serra Verde is covered by a 15-year government-backed purchase agreement, and USAR has received up to $1.6 billion in funding support from the US Department of Commerce.
According to the company, the former CEO of Serra Verde, Thras Moraitis, has joined the board of USAR as part of the completed transaction and will succeed Barbara Humpton on October 1st.
