PERTH (miningweekly.com) – Rare earths miner Lynas has reported an increase in total rare earth oxide production for the three months to March, compared with the previous quarter.
The ASX-listed miner on Tuesday told shareholders that total rare earth oxide production increased from the 3 410 t delivered in the second quarter, to 4 463 t, while neodymium-praseodymium (NdPr) production declined slightly from 1 367 t to 1 359 t in the same period.
CEO Amanda Lacaze stated that the Malaysian operations continued to operate at around 75% of Lynas NEXT production rates, equivalent to original nameplate production.
“We continue to assess increasing production rates. At this stage, we have elected to remain at 75% of Lynas NEXT rates as it allows us to maintain our strict Covid-19 related health and safety protocols and manage variability in the external environment, particularly related to inbound and outbound logistics.”
Lacaze reported that sales revenue of some A$110-million was achieved during the third quarter, down from the A$119.4-million reported in the second quarter, while sales receipts increased from A$68-million to A$133-million in the same period, in part owing to the delay in cash collection from revenue generated in the December quarter.
Lacaze said that the invoiced revenue was affected by continuing difficulties with shipping availability as a result of the Covid-19 pandemic and its effect on global trade, as well as the blocking of the Suez Canal in March, which delayed some shipments into early April.
Sales volumes for rare earth oxides in the third quarter declined from 4 052 t to 3 096 t.
“As the Covid-19 pandemic continues, especially in Europe, we continue to hold a cautiously optimistic view of the market. The rare earths market appears to be recovering well, with both magnet and catalyst sectors experiencing robust demand during the quarter,” Lacaze said.
Meanwhile, during the quarter under review, Lynas continued to progress its Lynas 2025 foundation projects, which included an agreement with the US government to jointly fund the construction and development of a commercial light rare earths separation plant in the US.
Once operational, our co-funded light rare earths plant and proposed heavy rare earths plant would provide the US with a secure domestic source of high quality separated rare earth materials. As well as strengthening Lynas’ position in this key market, security of supply is an essential foundation for the renewal of downstream specialty metal making and permanent magnet manufacturing in North America.
“These initiatives are expected to be the first step towards kick starting downstream metal making, permanent magnet manufacturing and other downstream processing in North America,” Lacaze said.
Work on the Kalgoorlie rare earth processing facility also continued during the quarter under review, with Lynas receiving approval for the commencement of limited preliminary construction works on site from Western Australian government agencies. In addition, procurement and fabrication of key process equipment continued.