Clayton Utz Advises JARE on A$200M Investment, Supply Deal with Lynas

Co-Head of our Japan practice, Hiroyuki Kano, led our team, which included special counsel Shigeki Yamaura, and from the Energy and Resources team, partner Stuart MacGregor and senior associate Jon Prentice. Hiroyuki and Shigeki advised JARE on the capital investment to Lynas while Stuart and Jon advised on the new supply arrangement.

Under the new agreements, the Japanese market will receive certain priority supply rights over Lynas’ growth capacity until 2038. JARE (a special purpose company established by Japan Organization for Metals and Energy Security and Sojitz Corporation) will, in addition to the $200 million capital contribution, also forego the historic US$11.5 million interest due under the Loan Facility with Lynas.

In a statement released to the market on 7 March, Lynas CEO & Managing Director Amanda Lacaze welcomed the new agreements as demonstrating “the deep commitment of JARE to the ongoing growth and success of our company”.

Commenting on our role, Hiroyuki said:

We congratulate JARE on its continued vital partnership with Lynas, which will provide an ongoing stable supply of rare earth to Japan into the future and is vital to support its advanced manufacturing industry. We are very honoured that JARE chose our firm to advise on this transaction and look forward to helping it further expand its strategic partnership with Lynas.

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