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Lynas Corporation Limited's (ASX: LYC) vision is to be a global leader in Rare Earths for a sustainable future; a vision realised by the passion and practices of our people.
Lynas is an ASX listed company, with the strategy to create a reliable, fully integrated source of Rare Earths supply from mine through to customers, and to become the benchmark for security of supply and environmental standards in the global Rare Earths industry.
Lynas owns the richest deposit of Rare Earths in the world at Mount Weld, Western Australia. Project development has commenced, with the first mining campaign completed and two processing plants underway. All necessary approvals required for project development have been received, the project is funded and production will commence in 2011.
Lynas Corporation inks new customer contract for Rare Earths project
Lynas Corporation (ASX: LYC,OTC:LYSDY) has signed a new supply agreement with a major Japanese Rare Earths consumer for the supply of Mount Weld Rare Earths to be produced at the Lynas Advanced Materials Plant (LAMP) in Kuantan, Malaysia.
The contract will be for product supplied from the 11,000 tonnes of Rare Earth Oxide (REO) per annum in Phase 1 production at the LAMP, which is on schedule for the third quarter of 2011.
The contract price is the China FOB market price for the product at the time of delivery, plus delivery costs from FOB Kuantan to Japan. The contract has an evergreen clause, allowing the contract to extend upon mutual agreement.
Engineering and construction of both the Concentration Plant in Western Australia and the LAMP remain within budget. The first feed of ore into the Concentration Plant in Western Australia is on target for early 2011.
The first feed of concentrate to the kiln at the LAMP in Malaysia is on target for the third quarter of 2011. Lynas has received all required approvals to construct both plants.
Nicholas Curtis, executive chairman, believes that the signing of the contract is another key milestone for the company and the Rare Earths project.
“Lynas is extremely pleased to sign this contract with one of the leading companies in their specific market."
"Progress in construction of both the Concentration Plant in Western Australia and the LAMP in Malaysia has enabled Lynas to re-engage with the Rare Earths customer-base and move supply contract discussions forward."
"Customer interest has increased further since the export quota reduction announced mid-year and Lynas is able to provide support to the market with production in 2011. The company anticipates further contract announcements over coming months," Curtis said.
The company continues to be actively engaged with potential customers in Europe, Japan and the USA.
Lynas owns the richest known deposit of Rare Earths, also known as Lanthanides, in the world at Mount Weld, near Laverton in Western Australia.
This deposit underpins Lynas’ strategy to create a reliable, fully integrated source of Rare Earths supply from the mine through to customers in the global Rare Earths industry.
‘Rare Earths’ is the term given to fifteen metallic elements known as the lanthanide series, plus yttrium. They play a key role in green environmental products, from energy efficient compact fluorescent light bulbs (CFLs) to hybrid cars, automotive catalytic converters and wind turbine generators.
On August 23, Lynas revealed the Mount Weld Composition price for rare earths has risen a hefty 102% over the previous month, to US$43.28/kg on an FOB China basis as at 23 August 2010.
