Lynas becomes first producer of heavy rare earths outside China

Australia’s Lynas Rare Earths (ASX: LYC) has become the first producer of so-called ‘heavy’ rare earths outside of China following the successful production of dysprosium at its Malaysia plant.Dysprosium is a key input in the production of high-performance magnets used for powering electric vehicles and wind turbines. Due to its strategic importance, the mineral was recently placed under export restrictions by China, the leading producer of rare earths.On Friday, Perth-based Lynas confirmed that it has successfully produced the first batch of dysprosium oxides from its Lynas Malaysia refinery. The facility has been in operations in 2012, producing mainly ‘light’ rare earths used in smartphones and defense applications.Lynas’ production of dysprosium — the amount of which was undisclosed — marks the first time that a company outside China has produced a heavy rare earth on a commercial level. China has dominated the world’s supply of all rare earths, accounting for about 70% of the mined output and nearly all of the processing.Lynas currently sources ore for its refineries from its Mt Weld mine, located near Kalgoorlie in Western Australia. The deposit is estimated to contain 2 million tonnes of total rare earth oxides in reserves.“The production of this on-spec dysprosium is a significant step for supply chain resilience and provides customers with the option of sourcing product from an outside China supplier,” Lynas CEO and managing director Amanda Lacaze stated in the Friday release.She added that the company has “engaged with customers in Japan, the United States and Europe” regarding its supply of heavy rare earths.Last month, Lynas commissioned the new heavy rare earths separation circuit at the Malaysia plant. First production of dysprosium has been achieved on schedule, with production of terbium to follow in June. According to the company, the new circuit is capable of separating up to 1,500 tonnes of heavy rare earths per year.In its recently quarterly operational report, Lynas noted that pricing for its heavy rare earth product is expected to be at a premium compared with benchmark prices in China, reflecting “high demand” from Western customers.In the US, the rare earth producer is also building a new refinery in Texas, but has said it may need government funding to complete the project.Shares of Lynas Rare Earths traded 2.7% higher at market close in Australia, giving it a market capitalization of A$7.2 billion.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com