Rare earth stocks experienced declines on Monday as investors engaged in profit-taking, following a surge last week. The previous spike was triggered by the announcement of a new framework agreement between Prime Minister Anthony Albanese and US President Donald Trump. This framework aims to establish price floors for new producers and prevent asset sales based on security concerns.
Arafura Resources experienced a 4.8 per cent decrease, trading around 40 cents. This followed a high of 62 cents last week in the wake of the US-Australia announcement. Arafura Resources is focused on developing its Nolans Project in the Northern Territory, which will produce neodymium and praseodymium (NdPr) oxide.
Other companies in the sector also saw their share prices decline. Australian Rare Earths dropped by 3.8 per cent, while Australian Strategic Minerals experienced a more significant plunge of 9.1 per cent. Lynas Rare Earths, a major player in the rare earths industry, saw a comparatively smaller decrease of 1 per cent. Lynas is involved in the mining and processing of rare earth minerals, particularly neodymium and praseodymium, used in various high-tech applications.
