Noble unit signs MoU to supply rare earth products to Chinalco Guangxi

BEIJING (Reuters) - Commodities trading firm Noble Group Holdings Ltd said on Monday its subsidiary Talaxis has signed a memorandum of understanding (MoU) to potentially supply rare earths products to Chinalco Guangxi Nonferrous Rare Earth Development Co Ltd.

Under the MoU, Talaxis will supply via sourcing, offtake and tolling of up to 42,000 tonnes of rare earths products, including concentrate and oxide, per year to Chinalco Guangxi, a joint-venture with China’s biggest state-backed aluminum producer Aluminium Corporation of China (Chinalco).

Chinalco Guangxi will also help Talaxis with its rare earth projects, including the construction of the Songwe Hill rare earths project in Malawi in southeast Africa, according to the statement.

“Through this partnership Talaxis has the capability to support the ongoing security of supply globally,” executive director Daniel Mamadou was quoted in the statement as saying.

The cooperation could also leverage Noble’s logistics management expertise to transport the commodities and support Asia’s transition to a low-carbon future, he said.

Technology metals or rare earths are expected to be a focus area for Noble Holdings, which took a small stake in ambitious Australian rare earths developer Arafura Resources via Talaxis this year.

China is the world’s largest producer of the metals. It exported around 3,091 tonnes of rare earth to all countries in October.

Reporting by Min Zhang and Shivani Singh; Editing by Simon Cameron-Moore