Lynas Says Rare Earths Demand for Magnets Will Boost

Australian listed miner Lynas Rare Earths Ltd said that the demand for rare earth magnets will further increase in 2022. Due to the interference of the Covid-19 pandemic, the company's production and sales revenue in the first quarter was weaker than the previous quarter. The following are some remarks of its operation report.

"The demand for rare earth materials in the magnet market is still very strong, and our customers report that they expect this demand to accelerate further in 2022. Given that many market participants expect strong growth to continue, the price of rare earth materials for magnets Still at a high level. The average domestic price of neodymium and praseodymium (NdPr) in China this quarter was US$80.1/kg."

"Sales in this quarter were limited by the impact of Covid-19-related production, and sales volume was affected by the resulting NdPr production priority. Due to limited transportation capacity, there were delays. Despite these challenging conditions, our close relationship with long-term customers allows us to minimize any supply chain disruptions."

“Despite the large number of vaccinations among staff, the increase in the number of Covid-19 cases in Kuantan this quarter has caused partial or total shutdown of the lysis and leaching plant for 11 days. The reason is that there are no people who need to be quarantined. We can use this time for major During this period, because we prioritized the production of neodymium with available personnel, the finishing of non-neodymium products was also suspended for 16 days.”

Covid-19 continues to affect logistics, and delays in incoming and outgoing goods have affected the availability of key production inputs and finished product delivery. Despite these challenges, the team managed to maintain the production of NdPr at 70% of Lynas.

Lynas is the only large-scale producer of separated rare earths outside of China. The company's rare earth deposit located at Mt Weld in Western Australia is recognized as one of the highest grade rare earth mines in the world. We operate the world's largest single rare earth processing plant in Malaysia.

Lynas' rare earth oxides are mined and initially processed at the Mt Weld concentrator. These materials are then transported to our 100-hectare advanced materials plant in Gebeng, Malaysia, where the concentrate is separated and processed to produce high-quality rare earth materials.

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