Lynas Corp. to Restart Malaysian Rare Earth Refinery Construction in February

Australian rare earth developer, Lynas Corporation, which owns Mount Weld mine in Australia, restarts suspended construction work of around A$ 300 million refinery in Malaysia in February. The firm can restart the project after the firm raised A$ 450 million of capital through equity finance. The firm expects the refinery construction will complete in March 2011 ramping up to full production at annual 11,000 tonnes in rare earth oxide in around 6 months.

The vice president Matthew James said the plan to reporters of Japan Metal Bulletin in Tokyo on Tuesday. The firm starts construction of concentration plant at the mine site in Australia in June. The firm plans to complete the plant in November.

The firm produces concentrate at mine site and deposits them in Australia and Malaysia. The firm will start the production of cerium, europium, lanthanum and neodymium and praseodymium as soon as completion of the refinery.

The firm expects early start of the expansion to double the capacity to 22,000 tonnes per year for A$ 100-150 million. However, Mr. James said the firm will announce the detailed schedule in a couple of months.

Mr. James said 6 users including 3 Japanese companies consider purchase rare earth from Lynas Corporation and the firm already has long term sales contracts with 4 companies.