Warnie,1. No plant in China, or anywhere else, is configured to...

Warnie,
1. No plant in China, or anywhere else, is configured to process Mt Weld concentrate.
2. Even if they could concentrate sells for 20/30% of oxide prices, circa $10/12kg at current basket BUT Lynas current basket is priced at ROW prices, the Chinese would pay $5/9kg landed.
3. To process in China you are then trapped by Chinese quotas, VAT & tariffs so even if Lynas could set up a tolling operation there AND get a license to re export the Chinese would capture all the margin. This is the very reason the LAMP 1 was abandoned in China.
4. Sojitz are financing the SECOND LAMP module and the 8500ktpa offtake agreement relates solely to that completion. Even then there is an interest/repayment honeymoon and given Sojitz have just relaxed the covenants to allow Lynas to raise additional cash its not likely that they are Lynas's major concern.