Highlights

• Ganzhou Chenguang Rare Earths, a Shenghe Resources subsidiary, is acquiring Peak Rare Earths Limited.
• The acquisition cost is AUD 158 million.
• The goal is to gain full control of the Ngualla Rare Earth Project in Tanzania.
• The Ngualla project hosts 214 million tonnes of rare earth oxide resources.
• The project includes 4.61 million tonnes of REO and proven reserves of 18.5 million tonnes at 4.8% REO.
• The acquisition strengthens China's global rare earth supply strategy.
• This move gives China near-total operational control over a high-grade, NdPr-rich deposit.
• The deposit was previously of interest to Western and Japanese buyers.

Ganzhou Chenguang Rare Earths New Material Co., Ltd., (opens in a new tab) a wholly owned subsidiary of Shenghe Resources Holding Co., Ltd (opens in a new tab)., has announced a binding agreement to acquire 100% of Peak Rare Earths Limited (ASX: PEK) for AUD 158 million, according to a report by Asian Metal (opens in a new tab) (May 16, 2025) and Rare Earth Exchanges (REEx). The deal is structured through a "Scheme Implementation Deed" and will give Shenghe full control of the Ngualla Rare Earth Project in southern Tanzania.

Ngualla Rare Earth Deposit, Tanzania

Ngualla is one of the world’s largest undeveloped rare earth oxide (REO) projects. With a JORC-compliant resource of 214 million tonnes grading 2.15%, it hosts 4.61 million tonnes of REO. Proven reserves include 18.5 million tonnes at 4.8% REO, or 887,000 tonnes of contained oxides. Critically, NdPr oxides—key inputs for permanent magnets—make up 21.26% of the REO content. The project already holds a mining license, making it nearly shovel-ready.

Shenghe Resources & Chenguang Rare Earths

Shenghe Resources (SHA: 600392), one of China’s top vertically integrated rare earth groups, is aggressively expanding its global footprint. Through Chenguang Rare Earths, a key downstream processing arm, Shenghe is securing feedstock beyond China as geopolitical risks rise. The move follows Shenghe’s prior investments in Vietnam, Laos, and Greenland, further signaling its long-term strategy to lock in magnet metal supply.

Target Profile--Peak Rare Earths Limited

Based in Australia, Peak Rare Earths has focused exclusively on developing the Ngualla project since spinning out of African-focused junior miner Peak Resources. Despite strong fundamentals, the company struggled to finance mine development and associated processing infrastructure independently.

Strategic Implications

This acquisition gives China near-total operational control over Ngualla—a high-grade, NdPr-rich deposit that Western and Japanese buyers had once courted. The move cements Shenghe’s position as the gatekeeper of strategic rare earth projects across the Global South and complicates U.S.-led efforts to diversify critical mineral sourcing from African nations.