The Australian mining company operates a refinery in the Southeast Asian country. Now, locally sourced material is also set to be processed there.
The Australian rare earths producer Lynas plans to diversify its sources of raw materials. Until now, the company has processed material from its Mount Weld mine in Western Australia at its separation facility in Malaysia. In recent months, initial processing steps have also been carried out at Lynas’s new refinery – the first of its kind in Australia. In the future, raw material will also be sourced directly from Malaysia and processed locally. This could partially eliminate transport routes from Australia to Malaysia, making the supply chain more efficient.
On Friday, the mining group announced the signing of a corresponding Memorandum of Understanding (PDF) with Menteri Besar Inc., the strategic investment arm of the Malaysian state of Kelantan. The agreement aims to secure supplies of mixed rare earth carbonate. The raw material is to be sourced from ion adsorption clays – deposits that are particularly rich in heavy rare earths, which are in high demand for growing markets such as electric mobility. Ion adsorption clays are found in tropical and subtropical regions with intense weathering. Currently, these deposits are only mined on a large scale in southern China and neighboring Myanmar. Compared to conventional mining operations, these clays are significantly easier to extract.
China’s Export Controls Shift Focus to Heavy Rare Earths
In early April, China introduced export controls on most heavy rare earth elements, affecting global supply. In mid-May, Lynas announced a milestone: the first production of separated heavy rare earths outside the People’s Republic (we reported). Shortly before, the mining group had expressed interest in acquiring deposits in Malaysia and Brazil to further diversify its value chain.
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