Lynas Funds for Rare Earth Projects in Western Australia

Australian rare earth miner Lynas Corp is raising 425 million Australian dollars (306 million U.S. dollars) through rights issues to fund the construction of a cracking and leaching plant in Kalgoorlie, Western Australia.

Under the terms of the Kuantan concentrator's operating license renewed in February, Lynas has reached an agreement with the Malaysian authorities to agree to the early ore processing capabilities outside Malaysia by March 2023.

After the construction of the plant, the ore from Mount Weld will be processed into mixed rare earth carbonate, a process that involves removing some low-level radiation. The carbonate is then transported to Kuantan and separated into oxides.

The Kalgoorlie plant will undertake cracking and leaching of rare earth concentrate from Lynas' Mt Weld mine, which is also located in the WA goldfields region. The company will also explore opportunities for additional processing in Kalgoorlie.

The Kalgoorlie project has been awarded a major project by the Australian Federal Government, and has been awarded the status of lead agency by the State Government. The company plans to start early survey work before the main body construction starts in the middle of next year.

The project is expected to meet other key conditions of the Kuantan permit and the company has been approved on August 5 to build a proposed site for a permanent residue disposal facility in Malaysia, but it is still subject to study and final approval.

The funds raised by Lynas through the allotment are considerable and will provide emergency funds for the construction and upgrade of the Kuantan plant to switch to rare earth carbonate raw materials.

In a statement, the world's only major producer of rare earths outside China said it the new planned cracking and leaching plant in Western Australia forms part of a $500 million growth strategy to boost production by 2025.

The plant is expected to create up to 500 jobs during peak construction and increase Lynas' workforce in the Goldfields to over 200 people.

Australia Lynas CEO Amanda Lacaze said that the kiln is the longest lead time item for our Kalgoorlie project and placing this order is an important milestone in the development of our new rare earth processing plant in Kalgoorlie. The company is making good progress on the project, and we look forward to working with Metso Outotec on the engineering and supply of the kiln.

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