Lynas starts work on Kalgoorlie plant

Rare earths miner Lynas Corporation has moved ahead with the development of its Kalgoorlie processing plant after signing a $21.6 million contract with Metso Outotec.

The recently merged Metso Minerals and Outotec company will supply a 110 metre long, 1,500 tonne kiln – the largest and longest piece of equipment required for the plant’s operation – to process rare earth concentrate from Lynas’ Mt Weld mine in the Goldfields.

The contract is valued at around $US15 million ($A21.6 million).

The kiln has been manufactured to the company’s preferred design, Lynas said, and will provide “increased efficiency and reliability”.

Lynas said the kiln was an improvement on the four 60 metre kilns currently operating at the company’s Malaysia plant, where Lynas’ currently exports its rare earth concentrate.

Managing director Amanda Lacaze said Lynas was making good progress on its $500 million Kalgoorlie plant.

Metso Outotec will begin work on the kiln immediately, with components to be manufactured both in Australia and in European countries.

Shares in Lynas closed up 0.7 per cent to trade at $1.96.