4 million roadblock @ .28, page-18

The ongoing issues are very unfortunate. However, all part of the risks involved when investing in a startup company that is commissioning a new plant.

Q4 report 2013:
"Work programs implemented last year to address production issues in the cracking and leaching units of the LAMP have resulted in the incidence of operational issues in the cracking and leaching units being reduced substantially during the quarter. However, the Company continues to identify areas for further improvement in materials handling, concurrent with the continuous operations and increases in plant utilisation.
Subsequent to the end of the quarter, some temporary interruptions occurred in the product finishing areas of the LAMP. Product flow through certain process tanks was disrupted and one electrical control unit had an outage. Changes have been made to address these issues. As a result of these changes, the Company does not expect any recurrence."

Obviously the disruption in the product finishing areas of he LAMP has negatively impacted the production rate in January. If this issue had not occurred I strongly believe that production in January would have increased further over December. Lynas is expecting production in Q1 2014 to increase over production in Q4 2014.

Even wothout the disruption in the product finishing area, It is doubtful that the LAMP would have achieved full P1 capacity in January due to the ongoing improvements in materials handeling. While I believe the mechanical issues in the cracking and leaching areas have now been resolved, it would seem that their is further room for improvement in the systematic flow of all materials (feedstock, reagents, finished products etc...) through the LAMP. Until this is perfected, LAMP1 will not achieve full capacity.

I believe many here do not appreciate the complexity of trying to commission a plant that has utilised, as much as possible, the use of a PLC system. Doubtful any existing REO seperation plant could compare at all to how technologically advanced the LAMP is. It would not surprise me at all if someone told me that the amount of labour required to operate a 3Kt/pa seperation plant in China would be the same amount required to operate LAMP P1& P2 combined (22Kt/pa). They do not call it the Lynas Adavanced Materials Plant just because it sounds good. They call it the LAMP because that's exactlly what it is.