Lynas Corporation has signed a long term rare earths supply agreement with BASF.
The contract will see Lynas provide the materials from its Lynas Advanced Materials Plant (LAMP) in Malaysia for BASF’s Fluid Catalytic Cracking business, which uses lanthanum.
Lynas chairman Nicholas Curtis said the miner was pleased to be signing a long term agreement with BASF, which is a serious consumer of rare earths.
The contract includes product supplied from both Phase 1 and the Phase 2 expansion of the LAMP.
Curtis said Lynas is producing rare earths concentrate from its Mt Weld mine and is on track for first feed of rare earths concentrates at the LAMP plant in the fourth quarter of the year.
Phase 2 is scheduled for 12 months after Phase 1 and will double the LAMP capacity to 22 000 tonnes REO annually.
“This is significantly ahead of other new rare earths projects that have been announced outside of China,” he added.
The LAMP in Malaysia has recently come under fire from local residents, who are concerned over its potential to emit dangerous levels of radiation, however, the plant passed an IAEA investigation which found it would emit safe levels.