Australian integrated producer Lynas Rare Earths is planning for a complete shutdown or very low production at Lynas Malaysia for "at least up to" three months, according to its latest quarterly report.
The firm appealed to the Malaysian science technology and innovation ministry in February for an administrative review of a decision to prohibit the import and processing of rare earth concentrate to its 26,000 t/yr Lamp separation plant in Malaysia after 1 July. The plant provides around 15pc of global supply of neodymium-praseodymium (Nd/Pr) for high-performance magnets used in electric vehicle motors and offshore wind turbines.
Lynas in its latest quarterly report laid out the potential short-term consequences in the event of a forced shutdown of the plant, disclosing plans for a complete shutdown, or very low production, for "at least up to" three months. This will be followed by a period of reduced production, which will be ramped up according to the progress of the Kalgoorlie rare earths processing facility, the report said.
The Kalgoorlie rare earths processing facility project in Western Australia has entered its final construction phase, with dry commissioning activities having commenced in certain parts of the plant. Lynas Malaysia will likely receive the first mixed rare earth carbonate from the facility in August, according to the quarterly report.
The firm will also sell its inventory of Nd/Pr finished goods to its distribution agent, Japanese trading house Sojitz, which will be holding it for supply as required by Lynas' key customers.
The firm's NdPr output at its Malaysia plant hit an all-time high of 1,725t in January-March, up by 2.3pc on the year and by 14pc on the quarter, owing to plant efficiency improvements and no substantial downtime caused by external events, despite a three-day general shutdown.
The firm's total rare earth oxide output fell by 12pc on the year and 2.4pc on the quarter to 4,348t during January-March.
The $500mn expansion project at its Mt Weld mine, which targets a 70pc increase in throughput capacity from 7,000 t/yr to 12,000 t/yr of NdPr contained in concentrate by 2024, is progressing as planned.
Sojitz and state-controlled energy agency Jogmec in March made further investments in Lynas in exchange for heavy rare earths supplies.
