ECONOMY   Auto  

Japan secures rare earth supply for longer through Lynas funding

Australia’s Lynas Corp (ASX: LYC) has signed a 10-year loan extension on easier terms with its powerful Japanese backers, which means the Asian nation now has a larger and lengthier hold on the company’s rare earths output amid China’s threats to use its market supply dominance as a weapon in the trade war with the United States.

Under the new agreement with Japan Australia Rare Earths BV (JARE), a joint venture between state-owned Japan Oil, Gas and Metals National Corp (JOGMEC) and Sojitz Corp, Lynas’ principal payments due and the interest charged on the loan will be reduced.

Japan now has a larger and lengthier hold on the company’s rare earths output amid China’s threats to use its market dominance as a weapon in the trade war with the US.

The extension to 2030 to repay $147 million will help the Aussie miner, the only major producer of rare earths outside China, move forward with its 2025 expansion plans.

It would also aid financing the relocation of Lynas’ controversial processing plant from Malaysia to Western Australia, where its Mt Weld mine is located, over the next five years. 

“Once the new cracking and leaching plant is operational, the material shipped to Malaysia for processing will not include naturally-occurring radioactive material,” the company said in the statement.

Moving processing of rare earths from Malaysia to Western Australia, is also expected to help the company ramp up its production to 10.5kt of Neodymium and Praseodymium (NdPr) oxide a year in order to meet and profit from the expected demand growth.

The company’s main products,  neodymium and praseodymium, are key ingredients in permanent magnets used in electric vehicles, energy efficient consumer devices, and in the aerospace and defence industries.

News No: 4916
Date: 2019/06/27 - 19:57
News Source: MINING.COM

Japan  Australia  trade war  United States  electric vehicle 


Leave a Comment:


Guinea seeks developers for Simandou iron ore deposit

Guinea has launched an international tender for blocks 1 and 2 of Simandou, giving companies until Aug. 2 to outline their bids, as the country seeks to revive interest in the world’s largest undeveloped iron ore deposit.

Mineral Resources in good standing despite delay at Wodgina – report

Mineral Resources’ BB/Stable rating is unlikely to be affected by delays in the commissioning of the new features of its Wodgina lithium operation.

Australia: Iron Ore Exports Surge 18% in Q2 CY19

Australia - world's largest iron ore exporter has recorded rise in iron ore shipment for second quarter CY19, according to the vessel line up data maintained with SteelMint. Australia's iron ore export shipments recorded at 222.49 MnT in Q2 CY'19, up 18% as compared to 187.91 MnT in Q1 CY'19.

Lithium price: Tesla now sells 22% of world’s battery power

Adamas Intelligence tracks the battery capacity (and the metals used in them) of electric vehicles sold in more than 80 countries around the world, representing more than 90% of the global EV market.

BHP fourth-quarter iron ore output down 1%

BHP Group, the world’s biggest miner, on Wednesday flagged $1 billion in productivity losses for fiscal 2019 as unplanned outages and bad weather hurt its iron ore production.

Caofeidian freezes seaborne coal customs declaration

China's Caofeidian port in Tangshan, Hebei province, has put a freeze on customs declarations for all imported coal with effect from 16 July, stoking fears that similar restrictions will be placed on other north China ports.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners