https://www.miningweekly.com

Lynas aiming for long-term offtake agreements

23rd November 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Rare earths producer Lynas said on Monday that the company was looking to implement long-term offtake agreements with a variety of pricing mechanisms.

MD Amanda Lacaze told shareholders at the company’s annual general meeting that Lynas already had a long-term contract in place for its cerium product, which had a mutually beneficial pricing mechanism that had been exercised in both directions.

“The greatest value to both our firms has been the guarantee offtake/supply. For Lynas, this has allowed us to grow production knowing that we have a key customer for our highest-volume, lowest-value product.”

Lacaze reported that Lynas was working with a number of customers, which were seeking price predictability up to 2017, to secure long-term offtake agreements. These agreements would make use of a variety of pricing mechanisms, including fixed pricing.

“We believe working in partnership with these customers and together focusing on value creation will deliver greater growth for their businesses and for ours, than continuing to play the rare earths price casino.”

Lacaze added that Lynas also had a number of other strategies lined up to improve the resilience of its revenue line in order to grow its business.

“We are facing a new set of challenges for 2016. Our focus last year was improving our internal operations. Our focus in 2016 is to continue to improve our operations while tackling the challenges of the market in which we compete.”

During the 2015 financial year, Lynas reduced its general and administrative expenses by A$84.2-million, while an impairment review on the carrying value of the Lynas Advanced Materials Plant, in Malaysia, and the Mt Weld assets, in Western Australia, narrowed to A$16.8-million, compared with an impairment of A$196.4-million reported last year.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Latest News

Magazine round up | 02 October 2026
Magazine round up | 02 October 2026
2nd October 2026

Showroom

Lilak Aluminium
Lilak Aluminium

For over 15 years, Lilak Aluminium, a trusted leader in architectural extrusion supply, has delivered excellence to businesses like yours.

VISIT SHOWROOM 
Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 02 October 2026
Magazine round up | 02 October 2026
2nd October 2026

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

➕

➕

➕

➕

➕

RESEARCH CHANNEL AFRICA

SUBSCRIBE

➕

➕

➕

➕

➕

➕

➕

➕

➕

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕

➕







sq:0.04 0.061s - 111pq - 3rq
Subscribe Now