Please read the full quote below from the GS research note but...

Please read the full quote below from the GS research note but effectively they are saying that:

" The Mount Weld Rare Earths concentrate is not considered a radioactive material" so I strongly suggest we stop using that word.

Further: "In the LAMP, LYC has plans for the disposal of thorium, involving the mixing of thorium with lime, to neutralize (rather than dilute) the material into an iron-phosphate-gypsum product. Due to the introduction of the reagents, there is no concentration of the Th + uranium in the waste product. This product is currently planned to be disposed of in storage cells on site with the Th + Uranium in the Fe-Phosphate-Gypsum product."

Can I suggest that now a professional, objective panel has been appointed to review the LAMP operation that this issue is not going to cause much of a delay, if any. Worst case LYC may have to find a more permanent off site solution over the next 3 yrs.

To my mind the remaining issues are getting the LAMP to steady state, maximising recovery, and corporate governence,
separating the Chairman/CEO roles.

"Transport and Waste Disposal
During the beneficiation process, the low-level-radioactive, non-hazardous concentrate is
stored before being transported in containers to Fremantle for shipping. The slurry residue,
the tailings from the concentrator plant, is pumped to the residue pond where water is
reclaimed and returned to the concentrator plant.
The key issue in transport is the level of Thorium and Uranium in the concentrate.
The Mount Weld Rare Earths concentrate is:
? Not classified as Dangerous Goods under the Australian Dangerous Goods Code (ADG
Code) for transport by road or rail.
? Not classified as Dangerous Goods for transport by sea (International Maritime
Dangerous Goods Code 2006).
The Mount Weld Rare Earths concentrate is not considered a radioactive material. The level
of naturally occurring thorium is so low in the concentrate that the material is:
? Not regulated for transport as classified by the Australian Code of Practice for the Safe
Transport of Radioactive Material 2001.
? Not regulated for transport as classified by the International Atomic Energy Agency's
(IAEA) Safe Transport of Radioactive Material regulations.
The 44ppm/1% REO level in the ore is low. Thus, on average, the ore contains 660ppm Th +
25ppm U (238) and the specific activity for the ore is 3.0 Becquerels/g. We understand that
the concentrate from Mt Weld would have an estimated specific activity of 5.4X104 @ 15%
moisture based on concentration of 0.15% Th and 0.004% U on a dry weight basis which
translates to 6.4Bq/g.
4 May 2011
Lynas Corporation Limited
Goldman Sachs & Partners Australia
Investment Research
All figures in A$ unless otherwise advised
27
At these levels of radiation, the level is sufficiently low that the concentrate would
not be classified as a radioactive substance under current Australian or Western
Australian Code of Practice (which are in line with International Best Practice). We
understand that the levels are ~30% below the threshold at which the concentrate would be
classified as a radioactive substance. We understand that the concentrate would need to
have an activity >10 Bq/g to be classified as a radioactive substance in terms of legislation.
In the LAMP, LYC has plans for the disposal of thorium, involving the mixing of thorium with
lime, to neutralize (rather than dilute) the material into an iron-phosphate-gypsum product.
Due to the introduction of the reagents, there is no concentration of the Th + uranium in the
waste product. This product is currently planned to be disposed of in storage cells on site
with the Th + Uranium in the Fe-Phosphate-Gypsum product.
The two waste products which do not contain the naturally occurring radiation have been
identified for gypsum applications. For the residues (including the iron-phosphate-gypsum
containing the Th + uranium), LYC has already embarked on a programme of research and
development to use the residues in safe by-products.
The LAMP will also produce three Synthetic Mineral Products: Synthetic Gypsum, Magnesium
Rich Gypsum and Iron Phosphate Gypsum. LYC is advancing development of commercial
applications for all three products, achieving significant progress in the past 12 months.
1. For Synthetic Gypsum, LYC has entered into commercial discussions with plasterboard
and cement manufacturers.
2. For Magnesium Rich Gypsum, test work has been successful for conversion of
Magnesium Rich Gypsum into a product called Magnesium Fertiliser Booster. Field trials
have demonstrated improved plant yield, improved soil structure, reduced fertiliser
consumption and prolonged plant life.
3. For Iron Phosphate Gypsum, test work has also been successful in converting this into an
environmentally stable form suitable for commercial application as a concrete aggregate
in a concrete road base (legislation requires the Th=U levels to be <500ppm IAEA).
There are precedents in Europe for this type of product."