Lynas Rare Earths 2Q Output Falls Due to Plant Shutdown

Write to Rhiannon Hoyle at [email protected]

By Rhiannon Hoyle

Lynas Rare Earths on Monday reported a sharp fall in second-quarter production due to a temporary shutdown at its Malaysia plant for upgrade works, but said it expects second-half output to be slightly higher than previously anticipated.

The Australia-listed miner said its neodymium and praseodymium output totaled 901 metric tons for the three months ended Dec. 31, down from 1,526 tons the quarter immediately prior.

Lynas’s Malaysia plant was shut from mid-November until end of December while it worked to increase separation capacity and improve the reliability of the cracking and leaching plant, it said. The works comprised the biggest changes to the plant since it was first built, the company said.

The miner topped up lower production volumes from stockpiles that it built up last year while awaiting a decision on the conditions of its operating license in Malaysia. An amended license was received in October and inventory has now normalized, Lynas said.

“Production in the March quarter is now expected to be approximately 1,500 tons with production across the six months to June 2024 expected to increase slightly from the previous estimate to be in the range of 3,200 to 3,400 tons,” Lynas said.

The miner reported an average second-quarter sales price of A$28.70 a kilogram, down from A$47.40 a kilogram the quarter immediately prior. Lynas said that reflected a change in its product mix, including higher-than-typical sales of cerium-and-lanthanum based products.

The miner said prices have also been subdued by low demand in China, especially from makers of appliances such as air conditioners. “China’s economic recovery is seen as the main factor which could possibly trigger a change in price trend,” Lynas said.

Write to Rhiannon Hoyle at [email protected]