Lynas Malaysia and its importance to manufacturing supply chains was a key topic discussed at high-level talks in Japan on 7 March 2023.
The talks were part of a visit to Tokyo, Japan, during which Lynas Rare Earths CEO Amanda Lacaze signed new agreements with Japan Australia Rare Earths B.V. (JARE) that will support Lynas’ growth plans to meet accelerating global demand for Rare Earth materials, including via an AUD200 million capital investment to support Lynas’ growth ambitions.
Lynas Malaysia has been operating safely for over 10 years and the materials produced at its factory in Gebeng are used in products used in Malaysia every day – from cars to electronics such as smartphones.
According to Lacaze, Japan recognises the importance of Lynas as the only integrated producer of separated rare earth products outside of China and Malaysia’s role in the rare earths industry will become increasingly important as Malaysia progresses towards its goal of carbon neutral 2050.
Lacaze said, “Malaysia holds an important position as the only rare earths centre of excellence outside of China. This is due to the expertise developed at Lynas Malaysia over the past 10 years.
“The important role that Malaysia plays in the ethical and responsible production of rare earth materials was a key topic discussed during my visit to Japan. Japan recognises that Malaysians are now among the world’s pre-eminent experts in rare earths processing. This puts Malaysia at the forefront as countries around the world, including Australia, Canada and the United States, seek to develop their own rare earth expertise. It would be disappointing to see Malaysia lose its expertise in cracking and leaching.”
“If Lynas Malaysia’s cracking and leaching plant is forced to close on 1 July 2023, Malaysia will no longer have value-added processing capability for its existing rare earth deposits. This will limit the potential for new manufacturing industries in Malaysia, such as electric vehicles, and affect the jobs these industries would create,” continued Lacaze.
Commenting on the AUD200 million capital investment by JARE, Lacaze said, “The new agreements with JARE will further strengthen the Lynas balance sheet and support funding of capital projects designed to expand our global operating footprint and meet accelerating demand for Rare Earth materials. As always, investment decisions for this additional capital will be made after consideration of a range of factors. Confidence in a stable and consistent regulatory environment is an essential pre-cursor for investment.”
JARE is a special-purpose company established by Japan Organization for Metals and Energy Security (JOGMEC) and Sojitz Corporation. Under the new agreements, JARE will provide a contribution of AUD200 million and forego the historic USD11.5 million interest due under the Loan Facility for the period from 1 January 2016 to 31 December 2016, which has previously been deferred by JARE. JARE’s contribution will support Lynas’ ambitious growth agenda and may include current and planned projects designed to increase the production of Light Rare Earth and Heavy Rare Earth materials.
Source: Lynas Malaysia
