Lynas moves a step closer to US push
Rare-earths producer Lynas has taken an important step forward in its quest to expand its processing business into the US.
Rare-earths producer Lynas has taken an important step forward in its quest to expand its processing business into the US, winning through to the next stage of a US Department of Defence tendering process for heavy rare-earths supply.
Lynas said it had progressed its bid with US partner Blue Line to win defence department funding to establish a heavy rare-earths separation plant in Texas, to help relieve the US defence establishment’s reliance on China for supply of the critical metals — key ingredients in the manufacture of high-performance magnets, missile systems and other hi-tech equipment.
It is understood Lynas is one of several potential suppliers to win through to the next round of the tender process, launched late last year.
In a statement late on Wednesday, Lynas said it had won an undisclosed level of funding from the US Department of Defence to complete planning and design work for the construction of a rare-earths plant in the US.
Lynas said those plans would be examined against rival bids before any final decision was made on whether it had won a formal tender to build and operate the plant. It did not say how long it expected that process to take.
Lynas mines rare-earth ore in WA and processes it in Malaysia.
Lynas closed down 4.5 per cent at $1.395 before the update was released.