funding update, page-33

Rare earths miner Lynas is cutting costs in response to a fall in demand for its products and plunging commodities prices.

The company recently began production at its refinery in Malaysia but on Friday said the plant would operate at a reduced capacity due to subdued demand for its products.

"The current rare earths market remains subdued," Lynas said in a statement.

"Prices this calendar year have continued to fall, although there are now emerging signs of stabilisation in some categories."

Lynas mines rare earths at Mount Weld in Western Australia, and began producing rare earth products from its Malaysian plant in February.

It produces metallic elements used in products ranging from digital televisions, mp3 players and fluorescent light bulbs.

Shares in the miner added 1.9 per cent to 53.5 cents at the 1015 AEST official market open, against a benchmark fall of 0.5 per cent.