The mining company shows interest in deposits outside of Australia.
Lynas’ current business model involves mining rare earths in Australia and processing them at its own facility in Malaysia. Part of the refining process is also being shifted to Western Australia, where the company, the most important producer of these resources outside China, is currently optimizing separation processes at its Kalgoorlie site.
However, this week, CEO Amanda Lacaze floated another strategy to position Lynas as a strong alternative to China. According to a Reuters report, the company is considering acquiring rare earth deposits in Malaysia and Brazil. It’s also exploring partnerships with junior miners to help bring their projects online more quickly. In such cases, Lynas would likely contribute both expertise and capital.
Geological Similarities Make Brazil and Malaysia Attractive
Lacaze also highlighted the geological similarities between the deposits in Brazil and Malaysia, which resemble those found in Myanmar, one of the key producers of rare earths. Specifically, these are ion-adsorption clays, which allow for relatively easy extraction of the resources and tend to have higher concentrations of heavy rare earths. There’s growing interest in members of this subgroup, such as gadolinium and terbium, particularly since China, the leading country for rare earth processing, has made their export subject to approval (we reported).
China is likely to keep a close eye on Lynas’ plans. Political and economic ties between China and Malaysia are currently growing stronger. During a recent visit, Chinese President Xi Jinping even raised the possibility of a technology transfer for rare earth processing. Meanwhile, Brazil’s mining sector is attracting increasing investment from Chinese companies.
Read more: How China is Securing Access to Critical Raw Materials Abroad
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