China's government backed industries will remain in operation...

China's government backed industries will remain in operation for a long time making a loss because it is the chinese who buy 80% of their own output..
It says to me prices have been artificially manipulated down to drive others out of the marketplace altogether...
Why would you go buy from Lynas when most likely your manufacturing operation is in China whether you are a chinese company or foreign.
The problem really lies with Sojitz/JOGMEC who undertook to take the first 11ktpa from lynas...
Doesn't seem like they have been keeping up their MOU...
I suppose they just don't know what to do with all the cerium and lanthanum lynas produces for 3 times the price it can sell it for...70% of their output.
You don't need rare earth prices to rise, the magnetics and rarer rare earths will always go up in price. You just need the cerium and lanthanum price to rise which is highly unlikely given the supply worldwide.
The problem lies in the fact that the Lynas mix contains a lot of unwanted non cost effective product that must be produced in order to produce the rest.
Alternatively they really need a pre-beneficiation plant situated at the Mt Weld deposit.
Something along the lines of that which ARU are planning at Nolans Bore...
What would 11ktpa of REE with no cerium or lantanum look like on the balance sheet when sold. 11ktpa of the other 20% that is always produced above COP ?
Along with a much greater profit margin...
I myself would shell out as much as I could afford on a venture such as that.
Anybody given any thought to this?
Could save the entire company for the price of a plant in WA..
Few hundred million and a lot better projected return with a legitimate growth potential.
Simple