Lynas Corp has updated its 2025 growth plans, detailing a positive outlook on the rare earths market and regulatory issues in Malaysia.
The shareholder update emphasised the boom of rare earths in response to “global macroeconomic issues”, including the United States-China trade war that led to increased interest in Australian companies as the US looks to diversify supply sources.
It also reported that despite short term increases in the market, including prices for neodymium-praseodymium (NdPr) increasing by 40 per cent over the past 60 days, the company “remains focussed on longer term trends.”
Lynas reiterated that it was committed to reserving material for existing and prospective strategic customers, and would continue to build its inventory ahead of a further expected uplift in demand in 2020.
This strategy intends to “assist to consolidate (Lynas’) position as the preferred supplier to rest of the world customers.”
Lynas also outlined its ambition for “sustained growth” that will be driven by its Mt Weld project in Western Australia and operating assets in Malaysia.
The company’s operations in Malaysia have experienced regulatory setbacks in relation to the affect it will have on surrounding groundwater.
Lynas said via the report that it “remains confident” of a resolution to issues related to its water leached purification residue and was working with the Malaysian Government to renew its operating licence (which is due on September 2).
The company also announced it was continuing to progress its appeal that imposed a new condition in the renewal of its Malaysia operations.
This condition required the export of Lynas’ WLP residue out of Malaysia, with the appeal hearing data having been set for June 28.