Lynas Rare Earths announces Japanese support for expansion
Lynas Rare Earths has announced that it has secured further Japanese backing to develop its Mt Weld rare earths resource in Western Australia, the world’s largest source of critical minerals outside China.
The agreement with Japan Australia Rare Earths B.V. (JARE) will provide US$9 million through a subscription to Lynas shares to help fund an exploration program 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 also at 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.
Global demand for rare earth materials and NdFeB magnets continues to accelerate. NdFeB magnet demand is forecast to grow from 130,000 tonnes of NdFeB magnets consumed in 2020 to 265,000 tonnes in 2030, driven by growth in electric vehicles and wind energy.
“The relationship between Lynas and the Japanese Rare Earths industry is significant for the global rare earths industry,” said Lynas CEO Amanda Lacaze. “We are pleased to have JARE’s continued support, including for our exciting exploration program at Mt Weld.”
Lynas has previously announced an approximately $500m project to expand capacity at the Mt Weld mine and concentration plant to meet accelerating market demand for rare earth materials. JARE will also provide technical support to the exploration program through the involvement of world-leading geologists and other technical professionals from Japan Oil, Gas and Metals National Corporation.
It also announced a 50% expansion of its Mt Weld mine and processing plant in Western Australia to 12,000 tonnes of NdPr concentrates a year.
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