India’s rare earth magnets plan draws global suppliers

Australia’s Lynas Rare Earths Ltd, Iluka Resources Ltd and Rainbow Rare Earths Ltd of the UK, among others, have evinced interest in supplying rare earth oxides to prospective bidders under the planned 27,300 crore rare earth magnet manufacturing scheme, said three people in the know of the development.

- Rituraj Baruah & Manas Pimpalkhare

The development assumes significance given that these three mining majors are key players in the global effort to challenge Chinese dominance in the rare earths supply chain.

One of the three people said that the Union ministry of heavy industries through state-run Bharat Heavy Electricals Ltd (Bhel) has reached out to these global companies to gauge the interest of suppliers, and they have shown interest in signing long-term contracts with applicants under the scheme.

Mint earlier reported that the government is finalizing an incentive scheme to boost local production of rare earth magnets, and domestic entities like Bharat Forge, Mahindra and JSW are likely to bid under the scheme.