Lynas pursues ‘wife’ status with prospects, links | Australian Markets
Amanda Lacaze desires Lynas Rare Earths to be “the wife rather than the mistress” because the miner jostles for favour because the western provider of selection amid growing competitors for the geopolitically charged commodity.
The CEO confirmed Lynas was methods to crank up manufacturing of the much less generally discovered heavy uncommon earths subset after delivering its first batches during the quarter.
Chief government Ms Lacaze mentioned having the ability to promote the likes of terbium and dysprosium oxide – refined at its processing hub in Malaysia – was a essential aggressive benefit for the WA miner.
“It gives us an opportunity to bundle material with our NdPr . . . and meet the needs of some of our most strategic customers. I sometimes joke internally ‘so that we can be the wife rather than the mistress’, so we can actually provide the full suite of materials to these strategic customers.”
As it stands Lynas is the most important non-China based mostly uncommon earths producer globally, sourcing ore for its refining operations from the Mt Weld mine within the northern Goldfields.
But a current deal struck by the US Department of Defense to turn out to be primary shareholder in Californian miner MP Materials, and buy its uncommon earths at a fixed price, confirmed Uncle Sam is getting critical about rising its own provides.
MP Materials and Lynas, each backed by mining billionaire Gina Rinehart, had been at in talks to merge in early 2024 however a deal didn’t eventuate.
Since the beginning of the yr Lynas has been making an attempt to get the DOD to chip in more money for a proposed heavy uncommon earths plant it desires to construct in Texas.
The company is already because of obtain about $US258 million ($389m) for the plant, however talks because the begin of the yr with the administration haven’t but yielded an end result.
Ms Lacaze dismissed considerations the US was favouring its own over Lynas.
“We have a contract. It is an excellent agreement. We see our relationship with the US government as still a very positive one. I don’t think that any, any government or customer in the world is keen to trade out one monopoly for a second.”
Ms Lacaze was additionally of the view the US administration’s fixed price of $US110 with MP Materials would create a “more vibrant and a more buoyant market” and will result in larger costs.
Lynas on Thursday revealed it had inked a memorandum of understanding for a 3000-tonne capability neodymium iron boron magnet manufacturing unit with South Korea’s JS Link.
It comes after Ms Lacaze prompt Australian miners would benefit by partnering with Asian nations with robust manufacturing experience.
The settlement will need to progress to a binding settlement earlier than any manufacturing unit construct is locked in.
News of plans for world enlargement got here following a robust three months for the miner, with quarterly manufacturing of neodymium and praseodymium getting above 2000t for the primary time.
Notoriously opaque uncommon earths markets additionally appeared to show some features, with the average price of its uncommon earths merchandise hitting $60.2/kg, the very best since July 2022.
“This is due to a continued focus on developing strategic customer relationships and the implementation of a balanced pricing portfolio that includes pricing agreements independent of the market index.”
It additionally comes shortly after Lynas began producing its first batches of terbium and dysprosium oxide from its manufacturing unit in Malaysia.
Western uncommon earth miners argue overstocking of provides in China has saved uncommon earths costs in a glut for a number of years, and makes it tougher for them to get a stable foothold within the market.
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