Interested in rare earths? Mining tycoon Gina Rinehart owns shares in these 4 surging ASX companies

Backed by the billionaire.

Key points
  • Trade tensions are highlighting the potential for disruptions in the global rare earths supply chain.
  • ASX rare earths stocks with projects outside of China have been soaring.
  • Australian mining billionaire Gina Rinehart has invested in four such stocks on the ASX. 

It has been an action-packed couple of weeks in the mining game.

Firstly, it's hard to ignore the precious metals rally with gold and silver prices rocketing to all-time highs.

However, trade tensions between China and the US cast an even brighter light on rare earths.

These 17 elements play a key role in a wide array of modern-day industries such as clean energy, electric vehicles, and consumer electronics.

And China dominates the world's supply chain.

According to the International Energy Agency, it accounts for 60% of production and more than 90% of rare earths refining worldwide.

This supply squeeze came into focus after China expanded its rare earths export controls earlier in the week.

In a nutshell, it added five more elements to its restricted list to lift the total to 12.

Notably, the US relies on China for about 70% of its rare earth imports, according to the US Geological Survey.

In response, President Trump threatened to impose new 100% tariffs on Chinese products.

And subsequent media reports on Friday suggested that the Trump administration was considering buying into Australian rare earths projects to shore up supplies.

Broadly speaking, this thematic has been unfolding for several years.

And investors such as Gina Rinehart – one of the world's richest women – have been investing in ASX mining companies with rare earths projects outside of China.

Below we present four soaring ASX rare earths stocks backed directly by Gina Rinehart, or through her privately-owned business Hancock Prospecting.

A male geologist wearing a white hardhat and orange high vis vest talks on a walkie-talkie while staring at a rock showing mineral deposits

Image source: Getty Images

Lynas Rare Earths Ltd (ASX: LYC)

Lynas is the leading rare earths stock on the ASX with a market capitalisation of more than $20 billion.

It owns the Mt Weld mine in Western Australia, considered one of the most significant rare earths deposits in the world.

In Malaysia, the company also operates one of the biggest rare earths processing facilities outside of China.

Rinehart first commenced buying Lynas shares in early 2024.

Today, she owns 8.2% of the company, valued at about $1.7 billion.

Lynas shares have rocketed by 195% since the start of the year.

Arafura Rare Earths Ltd (ASX: ARU)

Rinehart's Hancock Prospecting forked out $60 million to acquire a 10% interest in Arafura in late 2022.

This placement was designed to fat-track the company's Nolans project in the Northern Territory towards mining.

Fast forward to today and Arafura remains in the final phase of financing Nolan's development.

The ASX rare earths stock has so far secured more than US$1 billion in conditional debt funding. It has also signed offtake agreements with several major global partners.

Today, Reinhart holds a 9.4% stake in the company worth about $120 million.

Arafura's shares have jumped by 238% since the start of the year.

Brazilian Rare Earths Ltd (ASX: BRE)

Brazilian Rare Earths is a mineral exploration business targeting district-scale rare earths discoveries in north-eastern Brazil.

The company is a relative novice on the ASX, having only listed on our bourse in December 2023 as part of an initial public offering (IPO).

Hancock Prospecting has been an investor since before the IPO.

Today, the company continues to advance its Rocha da Rocha project. So far, it has discovered numerous rare earths deposits across its tenure which remains largely unexplored.

This week, the group secured commitments to raise $120 million to advance the project.

Since the start of January, shares in this ASX rare earths stock have risen by 147% to $5.68 apiece at Friday's close.

Rinehart's stake in the company is reportedly 5%. This equates to more than $30 million in value.

St George Mining Ltd (ASX: SGQ)

On Monday, St George Mining secured $72.5 million in funding to move its Araxá rare earths and niobium project in Brazil closer to production.

Headlining this capital raise was a $22.5 million investment from Hancock Prospecting.

According to St George, Araxá holds a "world class" mineral resource with potential for further growth. It also shows favourable characteristics for a potential mining operation.

The cash injection will now support a host of works designed to advance the project, including a mineral resource upgrade, permitting, metallurgical test work, and economic assessment.

Shares in St George are up by a stunning 550% so far this year.

Motley Fool contributor Bart Bogacz has positions in Arafura Rare Earths. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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