Lynas’ NEXT project starts to deliver as Sept quarter output rises

25th October 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Rare earths developer Lynas has reported record production for the three months to September 30, while revenue increased by 15.2% on the previous quarter.

Neodymium and praseodymium (NdPr) production for the quarter reached a record 1 579 t, up 9.1% on the June quarter.

Lynas said on Thursday that the higher production was driven by the improvements introduced as part of the Lynas NEXT project, which is aimed at increasing output and expanding the project range.

Once completed, production of NdPr will increase to a sustainable 600 t a month.

In addition, new separation and processing capability will deliver a broader and more differentiated product range, allowing Lynas to participate in expanded and higher value segments.

The NEXT initiative is continuing on time and within budget, and is expected to be completed during the December quarter.

Sales revenue for the September quarter reached A$105.6-million, a 15.2% quarter-on-quarter increase. Average selling prices increased from A$21.3/kg in the June quarter to A$27.1/kg in the September quarter.

Meanwhile, Lynas is expecting a visit from the Malaysian review committee to its Lynas Advanced Materials Plant (LAMP) in early November.

The Malaysian government earlier this year announced its intention to undertake a review of LAMP and, to date, the members of the review committee have been named and have been given six weeks in which to perform the review.

The objective of the committee is to evaluate LAMP in terms of safety, health and environmental aspects, as well as residue storage.