Lynas Corporation Ltd
(ASX:LYC) has inked a deal with major Japanese trading house, Sojitz Corporation, to boost production and secure extra supplies of rare earths for the Japanese market. The deal is reportedly worth $300 million. The minerals explorer says it will request financial support of up to $US250 million for the deal, which will cover the cost of ramping up its Lynas Rare Earths project expansion to 22,000 tonnes per annum.
Lynas and Sojitz have formed a strategic alliance which includes off-take, distribution and financing arrangements.
Lynas’ chairman Nick Curtis says this is a landmark agreement which will help the company accelerate marketing to Japanese customers.
Lynas Corporation reported a net loss of $43 million in the year to 30 June 2010.
