Lynas Rare Earths is thrilled to characterise the December 2023 quarter as a period filled with excitement, citing significant advancements across various aspects of the business. Key achievements during the quarter include the near-completion of construction for the Kalgoorlie rare earth processing facility in Western Australia, coupled with the successful full commissioning of the plant.
In a noteworthy milestone, the Kalgoorlie facility received its first feed of material from Mount Weld in December 2023, marking a crucial step in the production process. 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 March 2024 quarter.
The Mount Weld expansion project remains firmly on schedule, with early works progressing according to plan. Notable developments include Stage 1 Structural, Mechanical, and Piping (SMP) works, as well as the initiation of electrical works in December.
Lynas is also 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. An essential environmental milestone was achieved with the conclusion of the WA Environmental Protection Authority’s assessment of the Mount Weld life-of-mine proposal.
The favourable recommendation for environmental approval is considered a crucial step toward obtaining full project approvals. Financially, Lynas reported quarterly sales of $112.5 million, reflecting a slight decrease from the previous quarter.
The decline is attributed to lower production levels, product sales mix, and ongoing low rare earths prices. The company is closely monitoring the rare earths market, with the improvement in prices hinging on China’s economic recovery.
A successful exploration drilling program was completed, focusing on fresh carbonatite below the current Mount Weld open pit mine. Results from 165 reverse circulation (RC) holes, covering 31,754 meters, revealed promising findings, with assays showing up to 3.3% rare earth oxide in fresh carbonatite.
Lynas sees these results as highly encouraging for the future of the Mount Weld resource, providing opportunities for a more targeted and strategic mine plan. To stay updated on Lynas Rare Earths and the latest industry news, subscribe to the Latest Mining News for timely updates on product announcements, industry developments, commodities, and more.