Australia and Malaysia-focused rare earths producer Lynas produced less rare earth oxide in the April-June quarter, although output for the July 2018-June 2019 fiscal year was higher.
Its rare earth oxide output fell to 4,651t during April-June from 5,444t for January-March. Output for 2018-19 totalled 19,373t compared with 17,753t in 2017-18. Sales for 2018-19 totalled 19,171t.
Production of magnet metals praseodymium and neodymium fell to 1,505t during April-June from 1,591t for January-March but rose to 5,898t in 2018-19 from 5,443t in 2017-18.
The average rare earth oxide price received fell to A$18.50/kg ($12.95/kg) in April-June from A$20.10/kg in January-March and A$27.1/kg in July-September last year, highlighting market volatility. Praseodymium-neodymium prices rose sharply in June but have retraced much of these gains in July.
US-China trade tensions have translated in renewed interest in Lynas as a secure supplier able to offset supply risks through long-term contracts, the company said, adding that it continues to reserve praseodymium-neodymium supplies for its strategic partners.
It continues to work with the Malaysian government to seek agreements for the management of processing residues that will enable its operating licence in the country to be renewed on 2 September.
Lynas announced plans during the April-June quarter to invest up to A$500mn in a new cracking-leaching plant in Western Australia. It also said it was considering additional downstream processing in Malaysia, as well as entering into a joint venture to develop a rare earths processing facility in the US.
