Lynas Rare Earths Achieves Milestones

Lynas Rare Earths characterized the fourth quarter of 2023 as a period marked by significant progress in various facets of the business.

The construction of the rare earths processing facility in Kalgoorlie, Western Australia, saw substantial completion during the quarter, accompanied by the comprehensive commissioning of the entire plant.

After finalizing kiln heating and other commissioning activities, the initial batch of material from Mount Weld was introduced into the Kalgoorlie facility in December 2023.

Lynas anticipates the gradual introduction of mixed rare earth carbonate (MREC) from the Kalgoorlie facility to the Lynas Malaysia plant, commencing in the latter part of the first quarter of 2024.

The Mount Weld expansion project remains on schedule, with early-stage activities progressing as outlined in the plan. This encompasses Stage 1 structural, mechanical, and piping (SMP) works in the thickener and filter circuit, as well as the initiation of electrical works in December. The company is in advanced negotiations with potential contractors for Stage 2 SMP works, and the tender for the construction of the tailings storage facility has been issued.

The Western Australian Environmental Protection Authority concluded its evaluation of the Mount Weld life-of-mine proposal, recommending environmental approval—an essential milestone in securing full project approvals.

In financial terms, Lynas recorded $112.5 million in quarterly sales, a decrease from the preceding quarter's $128.1 million. The company attributed this decline to lower production levels, the product sales mix, and persistently low rare earth prices, with the average NdPr market price at $US60/kg during the quarter.

The improvement in rare earths market prices is contingent upon China's economic recovery, according to Lynas.

Furthermore, Lynas successfully concluded its exploration drilling program into fresh carbonatite beneath the current Mount Weld open pit mine. The program, consisting of 165 reverse circulation (RC) holes covering 31,754 meters, yielded promising results, with assays indicating rare earth oxide concentrations averaging up to 3.3 percent in fresh carbonatite.

Amanda Lacaze, Managing Director and Chief Executive Officer of Lynas Rare Earths, expressed optimism about the Mount Weld resource's future, stating that the drilling results confirm extensive rare earth element mineralization below and around the current mine pit floor. This newfound understanding enhances opportunities for Lynas to develop a more targeted mine plan, taking into account specific elements in addition to grade considerations.