I know there has been a lot of talk about a potential merger of...

I know there has been a lot of talk about a potential merger of Lynas and MP and I have been looking at how MP shapes up as a partner with Lynas.  I think the best way to explain the present situation at the MP facility is to show a current photograph of the entire site as it exists today.   The first link below will take you to a page on the MP corporate website where there is a photo of the Mt. Pass installation. (Hover on the picture for a pop up description)…

First of all, one can immediately see that there is a real estate issue.  The mine is next to the rest of the operation and there clearly is not enough horsepower (ie processing equipment) in the system to process the amount of RE that management claims they are separating.  Does separation occur at Mt. Pass, something management would like us to believe or is the truth that most C&L and separation is accomplished in China?…

Actual Nd/Pr separation at Mountain Pass produces quantities that are better described as a hobby and it appears that the separation facility is a shed like building about the size of a pilot plant.  It is pretty obvious that C&L and separation at scale are a few years off and IMO there will need to be a cash raising to construct the system the folks at MP are envisioning…

Bottom line, there is very little in value and reason for Lynas to merge with MP.  The Mountain Pass facility is a bit disorganized, crowded and can only produce RE concentrate which is shipped to China for C&L and separation.  Mt. Weld is a proven mine with sustainability of 20 plus years and recent drilling campaigns showing the potential for much more.  Acquisition of additional ore at a remote site would make no sense especially if it needs to be shipped to Kal for processing…

Lynas is eons ahead of MP in terms of both C&L and separation.  Quite simply, MP does not have a process at scale to contribute much to the bottom line.  Take a good look at the page linked below and I think any notion that MP is of value to Lynas is dispelled by the actual photos of the operation.  Lynas was designed from the ground up and work continues making the process more efficient on a continuous basis. Also it should be noted that the 3 attached photos from the Lynas website demonstrate the differences between the Lynas process and that of MP in Nevada (US)...

Also, Lynas is on track to finish the NEXT business plan (2025) it would be a huge distraction to stray from what appears to be a tried and true course. Meanwhile the work goes on at Mt.Weld, Kalgoorlie and the LAMP which are all projects fresh off final commissioning…

Merger can be a good way for a company to grow however in this case there is too many negatives to disrupt existing operations.  MP is a rescue project and it would probably easier for Lynas to start from scratch and build an efficient separation facility in the US… JMHO...


https://mpmaterials.com/what-we-do/
https://lynasrareearths.com/kalgoorlie-western-australia/
https://lynasrareearths.com/kuantan-malaysia-2/
https://lynasrareearths.com/mt-weld-western-australia-2/