PERTH (miningweekly.com) – Rare earths miner Lynas has reported a solid quarter of production in the three months to June, however, lower market prices saw a significant decline in sales revenue.
Lynas on Monday reported that total rare earth oxide production for the three months to June had reached 4 475 t, up slightly from the 4 348 t produced in the previous quarter, while neodymium praseodymium (NdPr) production increased from 1 725 t to 1 864 t in the same period.
However, sales revenue in the June quarter fell to A$157.5-million from the A$237.1-million reported in the previous quarter.
“Lynas recorded its highest ever quarterly production of NdPr at 1 864 t and Mt Weld delivered record quarterly concentrate production. We continue to accumulate inventory as we plan for the start-up of the Kalgoorlie facility. We have secured supply to our key customers and, in the coming months, given low market pricing, we will hold additional inventory directly,” said CEO Amanda Lacaze on Monday.
“External market dynamics, including softer demand for NdFeB magnets in Japan and China’s recent oversupply of La-Ce, resulted in lower market prices for rare earth materials during the period. Sales revenue was A$157.5-million and sales receipts were A$188.9-million, reflecting the lower market prices for rare earth products during the quarter.”
Lacaze told shareholders that Mt Weld achieved record quarterly production in the period, with sufficient concentrate produced to feed the Lynas Malaysia plant and build inventory for the Kalgoorlie facility.
“During the quarter, we were pleased to receive a variation to our Malaysian operating licence which allows the Lynas Malaysia cracking and leaching plant to continue to operate until January 1, 2024. We continue to seek review of our Malaysian operating licence conditions to maintain the conditions on which Lynas made the initial decision to invest in Malaysia and ensure that Lynas is treated fairly and equitably as a foreign direct investor and as a significant employer and contributor to the Malaysian economy,” she added.
Meanwhile, the final major construction activities for the Kalgoorlie rare earths processing facility continued during the quarter and full plant commissioning commenced.
During the quarter, construction verification, energisation and function testing were completed for the majority of process areas with significant progress achieved on the wet and fluid commissioning and process commissioning. Major earthworks including ponds required for initial production and on-site services, including power, water and laboratory facilities, are also complete, including the on-site gas supply.
“The only major area required for first production which remains under final construction is the waste gas treatment plant. Additional resources have been mobilised to assist in the completion of this item, however, productivity improvements are limited by work-front availability,” said Lacaze.
The company is now targeting first production of mixed rare earth carbonate in September 2023, which remains within the range of ramp-up scenarios that have been considered for Kalgoorlie.
Meanwhile, the Mt Weld expansion project is progressing as planned, with earthworks nearing completion and the early concrete works well progressed. Fabricated steel modules are being delivered to site in preparation for contractor mobilisation.
Lynas has been awarded a A$20-million grant as part of the Australian government’s Modern Manufacturing Initiative Manufacturing Integration Stream. The grant will contribute to the development of a new capability to process apatite-rich ores from the Mt Weld orebody through a newly developed process which will be undertaken as part of the Mt Weld expansion project.