PERTH (miningweekly.com) – Rare earths miner Lynas has reported record sales revenue for the three months to December, reflecting strong customer demand.
The ASX-listed company on Wednesday reported that revenue for the quarter had reached A$202.7-million, up from the A$121.6-million reported in the previous quarter, with total rare earth production increasing from 3 166 t to 4 209 t in the same period.
Lynas noted that neodymium-praseodymium (NdPr) production for the same period increased from 1 255 t to 1 359 t.
“Demand for Lynas products remained very strong during the quarter and favourable market conditions continued, with customers indicating their expectation of accelerated demand in the next quarter. Logistics challenges remained during the period, however, solutions were implemented to mitigate these challenges,” said CEO Amanda Lacaze.
“Sustained demand for NdPr saw the market price reach $100/kg in November 2021, the first time since 2011 that it has reached this level. The average China Domestic Price for NdPr during the quarter was $105.9/kg. Customers indicated a priority focus on security of supply rather than price.”
Lacaze noted that shipping delays and disruptions continued around the world and in some cases were getting worse.
“For Lynas, transit time for concentrate shipped from Fremantle to Kuantan has increased from 15 days in March 2021 to 33 days in December 2021. Many supply chains are yet to return to normal and we see this continuing for some time.
“To mitigate the impact of the global shipping delays, the team implemented solutions including chartering a ship to transport Lynas’ rare earth concentrate from Fremantle port to Kuantan port. While this comes at an additional cost, it is outweighed by the benefit of ensuring continuity of supply to our customers. We expect to continue with a combination of charter and commercial shipping in the near term,” she said.
Meanwhile, Lacaze noted that Lynas continued to progress its Lynas 2025 project and the Western Australian Environmental Protection Authority had issued its assessment report recommending approval for the Kalgoorlie project.
The environmental approval is now awaiting determination by the Environment Minister.
Minor and preliminary works continued at its Kalgoorlie rare earths processing facility with the first three of five kiln sections delivered to site following arrival in Western Australia in late November. Additional fabricated steel tanks have also been delivered and the first bolted tank has been installed.
At the end of the December quarter, the Malaysian permanent disposal facility (PDF) for water leach purification residue received environmental approval from the relevant Malaysian regulatory authorities. Detailed assessments have been undertaken for the proposed PDF in the Gebeng Industrial Estate including an environmental impact assessment, a social impact assessment including community consultation, and a radiological impact assessment. The design for the PDF complies with national and international standards and builds on the company’s nine years of safe operation of residue storage facilities in Malaysia, said Lacaze.