Lynas to Start Rare Earth Concentrate Plant in March

Australian rare earth miner, Lynas Corporation starts operation of concentration plant at Mount Weld mine, Western Australia in March. The mine starts the operation at earliest as new mine other than China, which represents more than 90% world supply of rare earth. The firm starts operation of Malaysian advanced materials plant in September. The firm starts the operation to make annual 11,000 tonnes in rare earth oxide as the first step. The firm supplies around 8,500 tonnes of the products to Japan through Sojitz Corporation.

Lynas Corporation produces rare earth concentrate with 40% purity in rare earth oxide at the concentration plant, which is 1.5 kilometers away from Mount Weld mine for rare earth ore. The firm makes cerium, lanthanum, neodymium and other rare earth metals at Malaysian plant, which is to separate and refine the concentrate from Australia.

The firm signed 10 years sales contract with Sojitz to provide annual 8,000-9,000 tonnes of products. Lynas Corporation also signed 10 years contract with Rhodia of France to supply cerium, europium terbium and lanthanum.

Lynas Corporation plans to double the output capacity as early as in 2012 to establish annual 22,000 tonnes of capacity. The firm will decide the detail on the expansion through cooperation with Sojitz.

World rare earth demand is expected to increase by 40% in 2014 from 2010 level. However, the supply concern is increasing when the controlling supplier of China increases the export regulation. Lynas can provide one of the alternative sources for the buyers to diversify the sourcing to other than China.