KUALA LUMPUR: Lynas Corporation, which has secured a 10-year extension to its loan agreement with its long-term partner Japan Australia Rare Earths BV (JARE), will provide funding certainty for further investments in downstream processing at Lynas Malaysia.
It will also see the relocation of first-stage processing – cracking and leaching -- from Malaysia to Western Australia over the next five years.
Once the new cracking and leaching plant is operational, the material shipped to Malaysia for processing will not include naturally-occurring radioactive materials.
“This agreement means we can fund further investments in downstream processing at Lynas Malaysia and relocate our first stage processing to Australia.
“Japan is a very important partner for Lynas. Since 2011, we have developed strong relationships with Japanese customers and the products we make here in Malaysia have supported the development of Japan’s rare earths processing industry,” Lynas Malaysia managing director and vice president Datuk Mashal Ahmad said in a statement.
JARE is a special purpose company established by the Japanese government’s Japan Oil, Gas and Metals National Corporation (Jogmec) and Sojitz Corporation, a leading Japanese trading firm and Lynas’ exclusive distribution partner in Japan.
Mashal said through this agreement, Lynas Malaysia will continue to work together to develop strong supply chains to meet growing demand.
“Rare earths are also essential to Malaysia’s growing electronics industry in Penang and the Malaysian automotive industry.
“As the world’s second largest producer of rare earths products, Lynas can help to attract further investment in the downstream supply chain in Malaysia, which can position Malaysia as the manufacturing hub of products made from rare earths,” he added. - Bernama