AUST today: LYNAS PRODUCES RARE EARTH FOR THE FIRST TIME OUTSIDE...

AUST today:
LYNAS PRODUCES RARE EARTH FOR THE FIRST TIME OUTSIDE OF CHINA


ASX-listed Lynas Rare Earths has become the first commercial producer outside China of heavy rare earths, used in an array of renewable energy technologies.
Lynas, Australia’s largest critical minerals miner, has produced dysprosium oxide at its new facility in Malaysia, the company said in a statement.
“Lynas is now the world’s only commercial producer of separated heavy rare earth products outside China,” chief executive Amanda Lacaze said.
“(It) is a significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier.”
The company had flagged with its March quarter results last month that it would achieve first production in May. Lynas expects to produce another rare earth, terbium, in June. The firm said it expected pricing to reflect high demand for rare earths sourced from outside China.
“Lynas is uniquely positioned to contribute to and benefit from efforts to diversify and rebuild supply chains, including opportunities for a sustained market restructure,” Ms Lacaze said. “We are engaged with customers in Japan, the US and Europe regarding heavy rare earths supply.”
Beijing has banned the export of processing technology that could help rival nations, and has been accused of using state-imposed quotas to control supply.
In an effort to loosen China’s stranglehold, the US government has agreed a $US258m ($402m)contract for Lynas to build a new refinery in Texas.
Lynas operates the Mt Weld rare earths mine in Western Australia as well as the processing facility in Malaysia.
Late last month, ahead of the federal election, Ms Lacaze criticised the government plan to allocate $1.2bn to contract critical minerals in the national interest.
Some of these supplies will be sold, while others will remain stored as part of a strategic reserve the Prime Minister said would shelter Australia from any Chinese economic coercion.
“I have to say that I am at a loss to understand the policy,” Ms Lacaze said at the time. “It’s not going to suddenly make uneconomic projects economic. There is only $1.2bn in this fund. Even if you put half of that towards rare earths that doesn’t even cover Lynas’s full year production.”
Lynas posted third-quarter revenue of $123m, up on $101m this time last year, but below market expectations for $156m.
Lynas shares rose 2.7 per cent to $7.66 on Friday and are up 10 per cent since this time last year.
afp