Major Rare Earth Projects to Start in USA, Australia

Major rare earth development projects start operation in USA and Australia in first half of 2012. Lynas Corporation of Australia announced on Tuesday the firm starts operation of Malaysian downstream plant in April-June after the launch of Australian mining and concentrate making operation in 2011. Molycorp of USA will launch downstream operation in April at Californian mine site. Japanese industry expects the projects serve the stable supply by diversifying the sources from the supply giant of China.

Lynas Corporation makes rare earth products at the Malaysian plant. The production capacity is annual 11,000 tonnes in oxides for the first phase. The firm doubles the capacity in the second phase. Sojitz Corporation imports annual 9,000 tonnes of the products for Japanese users.

The firm started the concentrate making operation in May 2011. The downstream plant was to start operation in July-September 2011. However, the start was delayed due to opposition by local community for the plant for rare earth products containing radioactive elements. The firm got temporary license from Malaysian authority. Without problem for 2 years, the firm will get permanent operating license.

Molycorp makes rare earth products from residue at Mountain Pass mine. The firm launches downstream operation in April to treat virgin ore. The firm plants to make annual 19,050 tonnes of rare earth at the full capacity. The firm eyes expansion to increase the capacity to 40,000 tonnes in 2013.

The firm secured buyers for 78% of the production at the first phase. The firm sells 58% of the resources for buyers including Japanese companies. The firm provides remaining 20% for own business to make facility to improve water quality. The firm supplies the facility for local government and private water treatment companies.