Lynas Sees Rise in Demand for Rare Earth

Lynas Corporation Ltd expects demand for its rare earths products to grow over the medium term after beginning production of its first separated rare earths products in Kuantan in the March quarter.

The Lynas Advanced Materials Plant (LAMP) in Malaysia has now produced a full suite of rare earths products and is ramping up towards a capacity of 11,000 tonnes a year by the end of the second quarter of 2013, Lynas said in a statement.

The Federal Court of Malaysia last month backed earlier lower-court decisions that dismissed a challenge by environmentalists opposing the company's rare earths refinery in Kuantan.

In its March quarter report, Lynas reiterated its production guidance and said it had appointed Eric Noyrez as chief executive officer at the end of last month.

The company said prices fell 13 per cent compared with the previous quarter, achieving an average Mount Weld basket price of US$37.22 per kg in the first quarter.

At the end of the quarter, 15,593 dry tonnes of concentrate containing 5,540 tonnes of rare earths oxides (REO) were bagged ready for export.

"Lynas has projected rare earths demand to grow at above-GDP rates over the medium term, driven by increases in demand from key sectors such as rare earths permanent magnets, autocatalysts and fluid cracking catalysts," Lynas said.

These three markets are expected to account for around half of global rare earths demand by 2015.

Total costs for projects remain unchanged for the quarter.

By the end of the decade, Lynas predicts supply shortages in some rare earths element markets such as Neodymium/Praesodymium and Lanthanum.

Total staff at the Malaysian site fell to 1,515 at end March, down from 2,300 in mid-December 2012 as the project nears completion.


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