Lynas Rare Earths gains Japanese support to speed expansion

The world’s biggest source of critical minerals outside China, Lynas Rare Earths, has secured further backing in Japan to develop its Mt Weld rare earths resource in Western Australia.

Lynas has announced an agreement with Japan Australia Rare Earths B.V. which will provide US$9 million through a subscription to Lynas shares to help fund an exploration programme at the company’s Mt Weld mine in Western Australia.

JARE, a special purpose company owned by Japan Oil, Gas and Metals National Corporation and Sojitz Corporation, is a long-time backer of Lynas and has provided a senior loan facility of US$141 million to the company.

JARE has also agreed to remove capital management restrictions on the loan.

Mt Weld ores are partly processed in WA and the Lynas metals plant in Malaysia which produces Neodymium and Praseodymium (NdPr) – two critical metals which are essential to industries including electric vehicles, wind turbines and electronics.

Lynas CEO Amanda Lacaze said: “The relationship between Lynas and the Japanese Rare Earths industry is significant for the global rare earths industry.

“We are pleased to have JARE’s continued support, including for our exciting exploration programme at Mt Weld.”

Lynas has previously identified a potential extension of the mine into carbonatite minerals below the current Mt Weld ore reserve.

It has also announced a 50 percent expansion of its Mt Weld mine and processing plant in Western Australia to 12,000 tonnes of NdPr concentrates a year.

Further, the company is building new processing facilities in Kalgoorlie at a cost of $500 million and constructing two processing facilities in the United States, partially funded by the US government.

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Picture: Lynas Rare Earths