Lynas Rare Earths has accepted a $200 million capital investment from the Japanese Government to accelerate growth in return for guaranteeing supply of key rare earths to Japan which are used in high technology products such as computer drives, touch screens and electric motors.
Japan Australia Rare Earths will invest $200 million in capital in return for shares in the Perth company as well as foregoing a historic US11.5 million interest payment which had been due in 2016.
This comes after JARE subscribed US$9 million for new Lynas shares in September to fund an exploration programme at the company’s Mt Weld, WA mine.
Lynas did not say where the capital will be used but it is undergoing major expansions, constructing a Kalgoorlie part-processing facility and heavy rare earths processing facilities in the United States, among other projects.
Lynas CEO and Managing Director Amanda Lacaze said: “Lynas has a huge appetite for growth and a large capital investment plan.
“This $200 million capital investment from the Japanese Government, through JARE, will boost our balance sheet and assist in assuring the delivery of our major growth projects,”
Lynas and JARE have been strategic partners since 2011, with Lynas becoming the market leading supplier of rare earths to the Japanese market – all other major suppliers are from China.
Under the agreement signed today in Tokyo (pictured):
Picture: Lynas Rare Earths/Today’s signing agreement with Lynas CEO and Managing Director Amanda Lacaze, Executive Vice President of JOGMEC and Senior Managing Executive Officer of Sojitz Masaaki Bito.