joint venture with siemens, page-34

This announcement sounds excellent. I'm not sure whether this is the first time this has happened but with this announcement Lynas has shown that they are venturing outside of the their primary focus of delivering rare earths to the market through mining and processing of rare earth ore. With this agreement they will also be involved with bringing rare earth end products to the market also.

If my understanding is correct, there is a lot of money to be made in supplying rare earths, but possibly even more money to be made in manufacturing and supplying rare earth end products.

As a joint company, I would imagine Lynas will be paid market value for the supply of rare earths to the new joint company and from there the new partly owned company will be involved in making these new hi-tech magnets.

In a sense this sounds like a separate venture or an adjunct to what Lynas has being doing as a miner and also shows the negotiating advantage that Lynas has in being the first major supplier of rare earths outside of China.

Excellent stuff.