Lynas allocates A$25mil capex for Malaysian facility to produce separated hre products

KUALA LUMPUR: Lynas Malaysia, a wholly-owned unit of Lynas Rare Earths Ltd (Lynas), is targeting the first production of two separated heavy rare earths (HRE) products in 2025.

Lynas said about A$25 million (A$1=RM3.15) in capital expenditure (capex) for this project will be accommodated within the previously disclosed Lynas Malaysia Industrial Plan.

“A new process will produce separated dysprosium (Dy) and terbium (Tb) at Lynas Malaysia for the first time, and will complement Lynas’ existing light rare earths product range,” the Australian rare-earths mining company said in a statement today.

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Dy and Tb are both essential to high-performance rare earth permanent magnets used in electric vehicles and high-tech applications such as micro-capacitors which are essential to all electronic devices.

Currently, Dy, Tb and other HRE oxides from the Mt Weld ore body are sold as a mixed HRE compound known as SEGH (a mixed HRE compound containing mixed samarium, europium, gadolinium, holmium, dysprosium and terbium).

Lynas said the reconfiguration of one of Lynas Malaysia’s solvent extraction circuits will facilitate the production of Dy and Tb.

“The new circuit is designed with the capacity to separate up to 1,500 tonnes of SEGH per year.

“Front-end engineering design has been completed and detailed engineering design is underway, with commissioning and ramp-up expected in the middle of 2025,” it said.

The group said as a result of the separation of Dy and Tb from the SEGH compound, Lynas’ HRE product range will increase to five products, namely Dy, Tb, unseparated samarium/europium/gadolinium, holmium concentrate, and unseparated SEGH.

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At the same time, Lynas is progressing pre-construction activities for its planned United States (US) rare earths processing facility.

“Both Lynas Malaysia and the planned US rare earths processing facility have been designed to accept third party feedstocks as they come online,” it said.

Lynas chief executive officer and managing director Amanda Lacaze said Lynas’ Mt Weld deposit is remarkable for its endowment of HRE minerals as well as light rare earth minerals, and the circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate its commitment to processing all of the elements in the Mt Weld ore body.

“Dy and Tb are important inputs to high-performance magnets and electronic devices and we are pleased to enhance our product range to meet current and prospective customers’ needs.

“The initial separation of HRE at our Malaysian facility is an exciting development for our company and the first step towards offering an expanded suite of HRE products,” she said. – BK