Lynas Struggles With Problems in Malaysia

18. July 2022 | Market, Economy

Decline in production, demand for rare earths remains high.

Lynas struggled with some difficulties in the quarter ended June. The Australian mining group reported sales revenues of 294 million Australian dollars (198 million euros) on Monday, a decline of about ten percent compared to the third quarter. The background to this was problems with the production of rare earth oxides in the group’s Malaysian processing plant. There have been repeated interruptions in the water supply. Optimization of the processes should reduce fresh water consumption by 40 percent in the future and significantly reduce the risk of production stoppages.

By contrast, the selling price of the company’s products increased significantly in the fourth quarter. At the equivalent of 53 euros per kilo, it doubled.
Lynas should continue to benefit from the strong demand for rare earths, as many companies are looking to diversify their raw material supplies and reduce their dependence on China. The Australians’ know-how is also in demand in the USA, where a processing plant is planned. The US Department of Defense, which has commissioned Lynas with the construction in Texas, is leading the way here.

Photo: iStock/graffoto8

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