Rare earths miner Lynas Corporation had warned of job cuts as it plans to relocate its head office from Sydney to Kuala Lumpur.
Rare earths miner Lynas Corporation had warned of job cuts as it plans to relocate its head office from Sydney to Kuala Lumpur.
The former Perth-based company said it was implementing a number of initiatives to streamline its operations in an effort to improve organisational efficiency and reduce overall costs.
Lynas said the first step was a “simplification of its structure” by co-locating management personnel and resources with production and sales facilities in Western Australia and Malaysia.
“As I approach the end of my first month as CEO of Lynas, I am very focused on addressing those areas of our business where we have been underperforming,” new Lynas chief executive officer Amanda Lacaze said.
“I have reviewed the business with the team and we have identified opportunities to improve cost, production and financial performance.
“The streamlining of office locations is the first step in a series of initiatives aimed at simplifying our approach and focusing on the highest value drivers in our business.”
Other initiatives to deliver cost savings include (mostly) reducing contractor positions, improving asset utilisation, renegotiating supplier contracts and seeking improvements in procurement practices.
The company said it was maintaining a heavy focus on the ramp-up of production at the Lynas advanced materials plant in Malaysia.
It said it encountered bottlenecks in the past quarter, which affected production outcomes, but had since been resolved.
“By seeking to minimise the amount of rare earth lost during processing of Mt Weld ore, we create better value for our shareholders,” Ms Lacaze said.
“Lynas is in the rare earth business to make money for its shareholders on a long-term and sustainable basis.
“We remain confident in our ability to sell what we produce and are focused on ensuring we have the most appropriate structure for the company in order to maximise commercial outcomes for all stakeholders.”
Lynas’s share price dropped by 5.7 per cent to 13.2 cents per share at 1:10pm WST.
