Lynas Rare Earths described the December 2023 quarter as an “exciting period”, with many areas of the business progressing well.
Construction of the Kalgoorlie rare earths processing facility in WA was largely completed during the quarter, alongside full plant commissioning.
Following completion of the kiln heating and other commissioning activities, the first feed of material from Mount Weld was introduced into the Kalgoorlie facility in December 2023.
“Mixed rare earth carbonate (MREC) from the Kalgoorlie facility is expected to be progressively introduced to the Lynas Malaysia plant commencing late in the March 2024 quarter,” Lynas said.
The Mount Weld expansion project remains on track with early works progressing as planned.
“These include Stage 1 structural, mechanical and piping (SMP) works in the thickener and filter circuit and the commencement of electrical works in December,” the company said.
“Negotiations are well advanced with potential contractors for Stage 2 SMP works and the tender for the construction of the tailings storage facility has been issued.”
The WA Environmental Protection Authority also concluded its assessment of the Mount Weld life-of-mine proposal, where it recommended that the proposal be environmentally approved. Lynas said this was “an important step” towards receiving full project approvals.
Financially, the rare earths producer recorded $112.5 million in quarterly sales, down from the previous quarter’s $128.1 million.
“Sales revenue of $112.5 million and sales receipts of $107.1 million reflected the lower production levels for the quarter, the product sales mix and ongoing low rare earths prices, with the average NdPr market price at $US60/kg during the quarter,” Lynas said.
“Improvement to the rare earths market price continues to be dependent on China’s economic recovery.”
Lynas has also successfully completed its exploration drilling program into fresh carbonatite located below the current Mount Weld open pit mine.
The company completed 165 reverse circulation (RC) holes for 31,754 metres, with assays returning results averaging up to 3.3 per cent rare earth oxide in fresh carbonatite.
“The results of this exploration project are very promising for the future of the Mount Weld resource,” Lynas Rare Earths managing director and chief executive officer Amanda Lacaze said.
“The drilling has confirmed extensive rare earth element mineralisation below and surrounding the current mine pit floor and enhanced our understanding of the Mount Weld carbonatite. This provides opportunities for Lynas to develop a more targeted mine plan, including mining for specific elements in addition to grade considerations.”
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