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 processing facility, which 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 deliver a nameplate processing capacity of MREC feedstock to produce about 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 from A$730-million to A$800-million.
Planned Start/End Date
The first production of MREC is expected in August 2023.
Latest Developments
Lynas has reported in its quarterly report for the period ended March 31, 2024, that final commissioning and initial production activities at Kalgoorlie have progressed through the quarter.
Introduction of concentrate into the process has informed additional works and activities. This has included enhanced electrical back-up systems following the major electricity outage in late January, further testing of loading and unloading systems and additional testing of the flowsheet.
Only one construction contractor is now on site. This has enabled the finalisation of payment claims under those contracts. Based on the continued finalisation of construction costs and the extended commissioning timeline, the updated project budget for the Kalgoorlie facility is estimated at about A$800-million. This increase in expenditure will be covered from the existing cash balance and accommodated within the estimated $600-million capital expenditure envelope for the 2024 financial year.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Lynas Rare Earths, tel +61 8 6241 3800.