Lynas Seeks Capital to Keep Australian Rare Earth Project

Australian new rare earth miner, Lynas Corporation seeks financial supports from Japanese users to develop the mine after the firm announced suspension of the project on February 10. The vice president Dr. Matthew James said to a reporter of Japan Metal Bulletin in Tokyo on Wednesday the firm needs capital to continue the development.

The firm tries to develop rare earth mine, Mount Weld in Western Australia. The firm plans to make concentrates at mine site and ship the concentrates to Malaysia for refining. The firm already started plant construction in Malaysia. The firm plans to make rare earth oxides including lanthanum, cerium and neodymium while the firm has sales contracts with users in Japan and Europe.

However, the firm failed to get agreement of investor funds for additional finance from Bank. Dr. James said the funds try to liquidate the investment in Lynas under financial squeeze. Dr. James said without additional finance, the firm should stop the construction work for the plant by end of March.

Dr. James visited Japan to explain the project status to Japanese customers. He said the users were positive for development of the project as alternative source of Chinese suppliers. The firm tries to find the way for the finance from users in Japan, Europe and USA along with support of government of Japan, Australia and Malaysia.