Lynas Keeps Rare Earth Sales Strategy after CNMC’s Acquisition

Australian new rare earth miner, Lynas Corporation keeps its sales strategy to supply rare earths to the customers in Japan, Europe and USA even after China Nonferrous Metal Mining Group (CNMC) takes a majority stake in Lynas. Lynas expects for resumption of a rare earth development project in September 2009 and the first shipment in September 2010. Lynas’ vice president, Dr. Matthew James explained to a reporter of Japan Metal Bulletin in Tokyo on Thursday.

Lynas has suspended development of Mt. Weld, a rare earth mine in Western Australia, with a lack of funding. In early May, the firm agreed with CNMC to approve CNMC’s 52% equity acquisition in Lynas. Lynas will be able to gain total US$ 366 million (approximately 36 billion yen) funds, including credit from Bank of China, for resumption of the project.

CNMC will hold a majority of Lynas’ shares and send several board members. However, Mr. James explained the management continues to be controlled by Lynas and keeps the sales strategy to supply rare earths to Japan, Europe and USA. He said Lynas doesn’t plan to sell rare earths to China.

Mr. James pointed out one of CNMC’s investment merits is to gain niobium and tantalum deposited in Northern area of Mt. Weld. CNMC offered Lynas to accelerate a feasibility study in Northern area of Mt. Weld, told Mr. James. China relies on import to secure niobium and tantalum materials.