lynas send concentrate straight to china, page-8

Warnie,
1. No plant in China, or anywhere else, is configured to process Mt Weld concentrate.
2. Even if they could concentrate sells for 20/30% of oxide prices, circa $10/12kg at current basket BUT Lynas current basket is priced at ROW prices, the Chinese would pay $5/9kg landed.
3. To process in China you are then trapped by Chinese quotas, VAT & tariffs so even if Lynas could set up a tolling operation there AND get a license to re export the Chinese would capture all the margin. This is the very reason the LAMP 1 was abandoned in China.
4. Sojitz are financing the SECOND LAMP module and the 8500ktpa offtake agreement relates solely to that completion. Even then there is an interest/repayment honeymoon and given Sojitz have just relaxed the covenants to allow Lynas to raise additional cash its not likely that they are Lynas's major concern.