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Game changer for industry
The ramping up of the Malaysian plant will end China's monopoly on rare earths supply.
Lynas had hoped to start producing at its Malaysian plant in 2011 when rare earths prices were booming but fierce opposition from local villagers was fought in the courts, delaying permits.
By the time it won that battle this year, Chinese domestic prices for rare earths products, which have a range of hi-tech industrial uses, had sunk to under $20 a tonne making it hard to be profitable.
The company said last year had been one of significant milestones for Lynas, positioning it to achieve its core objective of becoming the leading sustainable global supplier of rare earth materials to the market.
A successful Lynas would be a game changer for a Chinese-dominated industry, with its fully integrated operations from its Western Australia-based Mt Weld mine - considered the world’s best - through to its Malaysian finishing plant.
Patersons analyst Rob Brierley said the move to get out of its phase two expansion for 15 months was a good one that would otherwise have left it under huge financial stress and at risk of defaulting.
He said an end to the depressed market was not yet in sight but Lynas was well placed long term, with a strong resource base and state of the art, low cost concentration and processing plants.


Read more: http://www.smh.com.au/business/mining-and-resources/lynas-soars-on-debt-deal-20130916-2ttsa.html#ixzz2f2iQFj4y