Australian rare earth miners in $1 billion tie-up

Lynas has a rare earths processing facility in Kalgoorlie, Western Australia. (Mellen Burns/AAP PHOTOS)

Australia's leading rare earths miner is acquiring a smaller rival for nearly $1 billion amid surging demand for the metals that are vital to the modern electronics industry.

Lynas Rare Earths is buying Meteoric Resources in an all-scrip transaction that values its takeover target at $968 million, a 68.4 per cent premium to Wednesday's share price.