Lynas signs option for Kalgoorlie site

Rare earth producer Lynas Corporation intends to sublease an industrial zoned property from the City of Kalgoorlie-Boulder, three months after signing an agreement with the mining town to review potential sites for its cracking and leaching plant.

Lynas selected Kalgoorlie from two shortlisted locations in the Goldfields region, given its close proximity to the company’s Mt Weld mine and its skilled workforce and history in the mining and processing industries.

Terms of the proposed sublease are being finalised.

Lynas said the Kalgoorlie plant would upgrade its Mt Weld rare earth concentrate, which is currently exported to a processing facility in Malaysia.

The company said the recent agreement was a step towards delivering on the federal government’s Critical Minerals Strategy, announced last month, and the objective of the Western Australian government for more downstream processing.

Lynas managing director Amanda Lacaze said Kalgoorlie was an ideal location for the plant.

“Lynas was built from the ground up as an environmentally responsible rare earths producer and we will take the same approach to our facility in Kalgoorlie,” she said.

“The signing of this option is an important step for our project and we look forward to updating the market on its progress.”

In May, Lynas revealed plans to spend $500 million by 2025 to boost production – including expanding its processing operations to WA.

City of Kalgoorlie-Boulder chief executive John Walker said Lynas’s expansion to Kalgoorlie would increase the number of skilled residential jobs available to the mining town.

“There are so many exciting opportunities that this partnership brings about, and we look forward to working with all of the key stakeholders, including the state and federal governments to further support downstream processing here in Kalgoorlie,” he said.

“The city would also like to thank Neometals for their support in varying their option to sublease to allow both Lynas and Neometals to be accommodated within our strategic industrial areas.”

The state government welcomed the agreement, saying it would deliver 500 construction jobs and 200 ongoing jobs in the region, providing a range of supply opportunities for small and medium businesses in the Goldfields.

Premier Mark McGowan agreed Kalgoorlie was the most appropriate location for Lynas' processing plant, given its long history in mining innovation.

“I’m pleased Lynas will continue to work with Curtin University and the WA School of Mines to enhance knowledge and technologies surrounding the processing of critical minerals in Australia and continue to upskill Western Australians for these important local roles," he said.

Also welcoming the agreement was Chamber of Minerals and Energy of WA chief executive Paul Everingham, who said WA had the opportunity to become a major supplier of critical minerals needed for smartphones, electric vehicles, solar panels, wind turbines and for military technology.

“This decision by the world’s second largest producer of rare earth materials is a major economic boost for the region, particularly as Lynas’ investment includes infrastructure and supply chain capabilities which can form the basis of further industry development in the Goldfields,” he said.

“The drive to reduce the world’s dependence upon fossil fuels and decrease carbon emissions, coupled with the growing demand for technology that is faster, smaller and more efficient, is expected to foster significant growth in the rare earths market in the coming decade.”

Mr Everingham said the Goldfields region would help position the state as a leading global supplier of rare earths.