Name of the Project
Kalgoorlie rare earths processing facility.
Location
Goldfields region of Western Australia.
Project Owner/s
Rare earths miner Lynas Kalgoorlie, a subsidiary of rare earths developer Lynas Rare Earths.
Project Description
The project entails the construction and operation of the Kalgoorlie rare earths processing facility.
The project will process rare-earth concentrate, sourced from Lynas’ Mt Weld mine, to produce a rare-earth carbonate for export.
The processing facility site will comprise an acid cracking kiln and leaching plant, which will process material from the Mt Weld mine site.
Associated infrastructure includes small, temporary by-product (gypsum and iron phosphate) storage areas at the facility, which are not intended to provide long-term storage.
The facility was originally intended to deliver a nameplate processing capacity of mixed rare-earth carbonate (MREC) feedstock to produce about 7 000 t/y neodymium and praseodymium finished product. With the previously announced upgrades, the facility is now expected to be able to deliver a nameplate processing capacity of MREC feedstock to produce approximately 9 000 t/y neodymium and praseodymium finished product.
Potential Job Creation
About 290 positions are expected to be created during construction.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
The budget for the Kalgoorlie rare earths processing facility has increased to A$730-million.
Planned Start/End Date
The first production of mixed rare-earth carbonate from the Kalgoorlie facility is expected in August 2023.
Latest Developments
Lynas has announced a cost blowout at its Kalgoorlie rare earths processing facility.
An updated project budget for the Kalgoorlie rare earths processing facility has estimated the capital cost of the project at A$730-million, instead of the original price tag of A$500-million, and higher than the A$575-million estimated in 2022.
“In addition we estimate approximately A$50-million of precommissioning and commissioning costs will be capitalised. The updated project budget includes costs incurred to date, confirmed commitments, forecast final completion costs and estimated variation claims from contractors,” Lynas CEO and MD Amanda Lacaze said on August 29.
“Cost inflation associated with projects of this type is prevalent in Western Australia. With respect to the Kalgoorlie project, this has been exacerbated by the compressed timeline under, which the project needed to progress. The new forecast includes costs associated with additional resources mobilised to accelerate construction activities and contractor management challenges due to the accelerated schedule.”
Lynas announced upgrades to certain equipment and infrastructure at the Kalgoorlie operation in October last year to allow for future capacity expansion.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Lynas Rare Earths, tel +61 8 6241 3800.