21/05/2019 - 12:07

Lynas to spend $500m, set up WA processing

21/05/2019 - 12:07

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Lynas Corporation says it plans to spend $500 million by 2025 to boost production and expand its processing operations to Western Australia.

Lynas to spend $500m, set up WA processing
Lynas' Mt Weld mine is located near Laverton.

Lynas Corporation says it plans to spend $500 million by 2025 to boost production and expand its processing operations to Western Australia.

Shares in the rare earths miner jumped 16.2 per cent at 1.45pmAEST to trade at $2.28 on the news, which comes a day after it announced it signed a memorandum of understanding with US-based Blue Line Corporation to set up a rare earths separation facility in Texas.

In an investor presentation today, Lynas said it was seeking to relocate its cracking and leaching operations to WA, in order to satisfy Malaysian regulatory requirements.

Last month, Malaysian Prime Minister Mahathir Mohamad said Lynas must remove years of accumulated radioactive waste at the plant and clean raw materials before entering the country, if it was to have its license renewed.

Lynas had earlier indicated that it was considering building new processing facilities, given the situation in Malaysia.

Today, the company also indicated it would invest in a concentrator upgrade at its Mt Weld mine near Laverton.

It is conducting preliminary studies on whether to develop its WA upstream processing expansion at Mt Weld or in Kalgoorlie, which it said has better access to raw materials and energy.

The self-funded $500 million plan also includes investing in its processing facility in Malaysia, and said its new proposals will allow it to meet the conditions to operate placed on Lynas by the Malaysian government.

Yesterday, Lynas said its proposed rare earths separation facility in Texas would fill a supply chain gap for US manufacturers.

In March, Wesfarmers launched a $1.5 billion indicative takeover offer for Lynas, which was rejected a day later.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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