Lynas to invest $25 million in expanding rare earth product line

Company News

by Glenn Dyer

Lynas (ASX:LYC) is going to spend around $US25 million adding a new stream of rare earth products to the range produced at its Malaysian operation.

In a statement to the ASX on Thursday, Lynas said the processing circuits at the Malaysian operation will be modified to produce two new separated Heavy Rare Earth (HRE) products next year.

"A new process will produce separated Dysprosium (Dy) and Terbium (Tb) at Lynas Malaysia for the first time, complementing Lynas’ existing Light Rare Earth product range.

"Dy and Tb are both essential to high-performance rare earth permanent magnets used in electric vehicles and high-tech applications such as micro-capacitors, which are essential to all electronic devices."

Currently, Dy, Tb, and other HRE oxides from the Mt Weld ore body are sold as a mixed HRE compound known as SEGH.

The reconfiguration of one of Lynas Malaysia’s solvent extraction circuits will facilitate the production of both products. The new circuit is designed with the capacity to separate up to 1,500 tonnes of SEGH per year.

The company stated that the front-end engineering design (FEED) has been completed, and detailed engineering design is underway, with commissioning and ramp-up expected in the middle of next year.

"The approximately $25 million CAPEX for this project will be accommodated within the previously disclosed Lynas Malaysia Industrial Plan,” the company said in the statement.

The work will see Lynas selling a total of five rare earth products: Dy, Tb, unseparated Samarium/Europium/Gadolinium, Holmium concentrate, and unseparated SEGH.

Ms. Lacaze said the new circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate their commitment to processing all of the elements in the Mt Weld ore body in WA.

“Dy and Tb are important inputs to high-performance magnets and electronic devices, and we are pleased to enhance our product range to meet current and prospective customers’ needs.

"The initial separation of Heavy Rare Earths at our Malaysian facility is an exciting development for our company and the first step towards offering an expanded suite of Heavy Rare Earth products.”

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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