Australian metal producer Lynas Rare Earths has signed an initial agreement with Malaysia's state of Kelantan's investment agency Menteri Besar, to secure new feedstock for its Malaysian rare earths plant.
Menteri Besar and Lynas will negotiate a final agreement on the supply of mixed rare earth carbonates from Malaysian ionic clay deposits to the Australian company's local plant, Lynas said on 30 May. The supply agreement will take effect once developers start mining deposits in Malaysia's Kelantan state, it added. Possible supply volumes were not disclosed.
Lynas and Menteri Besar have also agreed to co-operate on developing Malaysia's rare earth sector broadly, but have not outlined specific measures.
Malaysia in September 2023 floated a ban on rare earth raw material exports, to support the growth of domestic mid-stream, downstream, and upstream rare earth industries, but this was not implemented.
Malaysia's ionic clay deposits are rich in heavy rare earths, making them an excellent potential feedstock for Lynas' plant, the company's chief executive officer Amanda Lacaze said.
Lynas' deal with Menteri Besar comes weeks after it became the first producer of separated heavy rare earths outside China, by producing separated dysprosium at its Malaysian plant. The company will start producing separated terbium at the site in June.
Lynas' Malaysian plant currently uses carbonate feedstock from the company's Mount Weld mine and Kalgoorlie processing plant, in Western Australia (WA).
