Foundations for the Future

The Lynas approach

Lynas Corporation Ltd is an ASX listed company, with the strategy to create a reliable, fully integrated source of Rare Earths from mine through to market, and to become the benchmark for the security of supply and environmental standards in the global Rare Earths industry. 

The foundation of this strategy is Mount Weld in Western Australia, the richest known deposit of Rare Earths in the world, and a state-of-the-art Rare Earths processing plant, the Lynas Advanced Materials Plant (LAMP), currently under construction near Kuantan in Pahang, Malaysia. Production is scheduled for third quarter of 2011.

Online in 2011, delivering Rare Earths globally

Lynas raised the required funds for project development in the equity markets in 2009.

Lynas is set to provide the first source of supply of Rare Earths outside of China when it comes into production in the third quarter of next year. We believe this timeframe puts us well ahead of our competitors. Our customers’ requirements and commitments are driving the business development strategy for products to be produced, growth of production and collaboration with partners in the value chain.

Lynas project status

A bankable feasibility study, including pilot plants, was completed on the Rare Earths deposit at Mount Weld. The first mining campaign was completed on time and on budget. Currently, Lynas is constructing a Concentration Plant at Mount Weld and the Lynas Advanced Materials Plant (LAMP).

The LAMP is being built in Malaysia due to the readily available industrial infrastructure, including industrial land, sources of gas, water and electricity, re-agents from local suppliers and a port that can manage container, chemical and bulk shipments. The area where the plant is being built also offers much knowledge infrastructure, such as technical and trade skills and chemical industry experience. The government infrastructure is in place and provides accountable regulators, clear legal frameworks and FDI incentives.

Once completed, the Concentration Plant and LAMP together will comprise the full production process from mine through to market. The Concentration Plant is due to come online in December 2010 and the LAMP in the third quarter of 2011.

Please click here for the update about the Concentration Plant.

Please click here for the update about the Advanced Materials Plant.

Rare Earths

Rare Earths underpin technologies that are fundamental in satisfying three key social trends as summarised below.

Improving energy efficiency
Rare Earths support the uptake of energy efficient initiatives through their unique physical and chemical properties. This allows them to protect the environment by lowering energy consumption and improve lifestyles through energy efficient applications that save money, without sacrificing comfort and reliability.

Enhancing environmental protection
Rare Earths are playing a pivotal role in greenhouse gas reduction through their unique application in automotive catalytic converters, hybrid vehicles, wind turbines and energy efficient compact fluorescent light bulbs.

Miniturisation of digital technology
The digital era is gathering pace; broadband access, digital television, digital cameras, and digital music are around us at home and on the move. Rare Earths are enablers of this technology and its miniaturisation. New materials and novel applications of them enable companies to produce more efficient, higher performance materials, which meet the demand for faster, smaller and lighter products.

Rare Earths Shortage

Whilst China dominates the production of Rare Earths, the Chinese resource base is fragile. The release of the second tranche of Chinese Rare Earths export quota for 2010 by the Ministry of Commerce resulted in a 40% decrease in available export quota in 2010 compared to 2009. This coincided with the launch of a nationwide crackdown on illegal mining of Rare Earths in China. Tightening supply and strong demand has led to Rare Earths prices rising rapidly.

Click here for the average Mount Weld composition price.

There has been much recent public discussion, particularly in the United States, about the forecast imminent shortage of Rare Earths and the potential impact on industries that rely on Rare Earths. The looming supply deficiency has been apparent for the past decade.

As demonstrated by the customers with whom Lynas has contracts to commence supply in the third quarter of 2011, commercial solutions are available. Lynas looks to provide the first source of supply outside of China to industries globally when production comes online as planned in 2011.