Australian billionaire Gina Rinehart's mining company, Hancock Prospecting, has acquired a 5.3% stake in US-based rare earths producer MP Materials.

The move further expands the mining billionaire’s investments in the mineral ore sector.

According to The West Australian report, the acquisition is valued at around $212m.

MP operates the Mountain Pass rare earth mine in California.

More than 38,500 tonnes of concentrated rare earths were produced by MP Materials in 2020, surpassing 15% of the world's consumption, according to the company website.

The acquisition comes after Lynas Rare Earths, another Australian company and the second-largest producer of rare earths outside China, ceased merger discussions with MP Materials.

A successful merger would have combined the two leading rare earth miners outside China, a country that tightly controls the market for the minerals, which are crucial to various high-tech industries.

Hancock Prospecting's interest in rare earths extends beyond MP Materials.

The company also holds a 5.85% stake in Brazilian Rare Earths (BRE), valued at around $34.3m. Hancock's investment in BRE, amounting to $21m, was made during a pre-listing funding round.

BRE is currently developing the Rocha da Rocha clay rare earths project in Bahia State, Brazil. This region is known for its numerous rare earths exploration projects, highlighting the global race to secure supplies of these vital components for future technologies.

In May last year, Indian iron ore producer NMDC was in talks with Hancock Prospecting for exploration and mining of lithium, reported Reuters.

Citing a source, the news agency said: “Lithium exploration is at a very nascent stage, but we are talking to Hancock Prospecting for their investments into it.”