Hochschild Mining (LON: HOC) has mined precious metal epithermal vein deposits in South America for 50 years and currently operates three underground mines, two in southern Peru and one in southern Argentina. The mines produced 245,325 oz. gold-equivalent or 19.9 million oz. silver-equivalent in the first half of 2019, the second highest production figures in the company’s history.
So investors could be forgiven for feeling a little taken aback by the company’s announcement that it is acquiring the BioLantanidos rare earths deposit in Chile for US$56.3 million in cash. Hochschild already owns a 6.2% stake in the early stage project, an investment it first made last year.
The BioLantanidos deposit contains terbium, dysprosium, praseodymium and neodymium — rare earth minerals that have permanent magnetic properties that are key in driving the efficiency of motors, particularly in electric vehicles, wind turbines and drone motors.
Continue reading at The Northern Miner.