There were major rumbles in the stock market last week, but one particular event stood out for me:
On Friday, China placed export restrictions on rare earth elements.
The West uses this critical group of minerals to make weapons, electronics and consumer goods.
China’s trade restriction on REEs was a direct response to Trump’s tariff announcement last week.
And for a long time, I’ve been spelling out the potential of this risk:
‘Rare Earths: China’s Unused Trump Card.’
And now, China has finally deployed its most crucial trade weapon against the US.
But there’s another essential thing worth noting here…
Insiders Knew What Was Coming
Interestingly, Australia’s richest person, Gina Rinehart, was one of the only Aussie guests at Donald Trump’s Mar-a-Lago celebration following his election victory last year.
She’s a vocal supporter of Trump’s policies, calling for Australia to have its own MAGA push.
But Trump and Rinehart both have something else in common… Something that’s been making major headlines in recent weeks:
A fondness for Rare Earth Metals.
As you probably know, Trump has been pushing hard on critical minerals in 2025, specifically Rare Earth Metals (REEs).
You’ve undoubtedly heard about the mineral deal with Ukraine trying to get hold of the country’s vast Rare Earth reserves.
I explained the fallacy of Ukraine’s ‘supposed’ Rare Earth deposits in a previous update here.
But that push follows Trump’s Greenland ambitions, which are also centred on REEs and other critical minerals.
There’s also speculation about a JV deal between Russia and the US to access the country’s untapped REE reserves from its vast Siberian wilderness.
So, should we be taking notice as an investor?
There’s no denying that Australia’s richest person is pivoting to REEs in a big way:
In December 2022, she invested $60 million in Arafura Rare Earths (ASX: ARU). Giving her a 10% stake in the company.
Gina also backed Brazilian Rare Earths (ASX: BRE), grabbing a 5.8% stake ahead of its IPO listing in 2023.
Then, in 2024, Gina Rinehart picked up a 5.3% stake in MP Materials Corp, a major player in the US rare earth sector.
At the same time, she also picked up a 5.8% stake in Australia’s only REE producer, Lynas Rare Earths [ASX: LYC].
An insider buying frenzy!
So it begs the question…
Does Reinhart know something that the rest of us don’t?
You can count on it!
The world’s most influential investors are intimately aware of long-term growth drivers.
It’s the key element that separates billionaires from the average punter.
Insiders are privy to the global dealings between suppliers, buyers, and policymakers.
This gives them intimate knowledge of the future direction of supply and demand.
They usually have a team of analysts and high-level contacts at their disposal.
The rich get richer by using this information, not by luck or an intuitive punt on the stock market.
It’s the key reason you should be following these insiders’ lead.
As markets panic, it’s important to recognise the opportunities that could emerge in the weeks ahead…
And right now, the biggest breadcrumbs are leading to Rare Earths.
Until next time.
Regards,
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James Cooper,
Editor, Mining: Phase One and Diggers and Drillers
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