Australian metal producer Lynas Rare Earths has raised A$750mn ($490mn) via share sales to ramp up and expand its global mining and processing operations, positioning itself to support magnet makers outside China.
Lynas has raised capital at a valuation of A$13.25/share, down by 10pc on its most recent trading price of A$14.73/share, it told investors today. The company will also offer existing retail investors the chance to buy up to A$75mn worth of shares at the discounted price.
Lynas will use some of the money it raised to expand its existing operations. The company produced separated dysprosium and terbium oxide at its Malaysian processing plant in May and June respectively, becoming the first maker of separated heavy rare earths outside China. It plans to expand its line of heavy rare earth products further.
Lynas also aims to expand its downstream processing operations over the next few years. It signed a non-binding agreement with South Korean permanent magnet manufacturer JS Link in late July to develop a 3,000 t/yr plant in Malaysia.
The company is also developing a 2,500–3,000 t/yr heavy rare earth and 5,000 t/yr light rare earth processing plant in Texas, funded by the US government.
Lynas is also developing projects to improve access to rare earth feedstock. The company signed an agreement with Malaysia's Kelantan state government to support rare earth-rich ionic clay firms. It is also ramping up its recently completed Mount Weld mine expansion, which should boost its total neodymium-praseodymium (NdPr) oxide production capacity by 2,400 t/yr.
Lynas' latest capital raise comes just days after three Chinese ministries published strict rare earth controls preventing private organisations and individuals from processing the minerals. The move has pushed up NdPr oxide prices.
