Lynas Rare Earths has just announced a jump in sales revenue the same week Arafura Rare Earths welcomed another $200 million in Federal funding, bringing the total public spend to over $1 billion.
Lynas Rare Earths
The December quarter saw Lynas generate its highest quarterly revenue to date, banking $141.2 million thanks to what chief executive officer Amanda Lacaze described as “high value strategic customers”.
“An uplift in sales revenue to $141.2 million and sales receipts to $145.9 million was achieved for the quarter despite continuing low market prices and subdued inside China demand,” Lacaze said.
“The revenue growth reflected our focus on high value strategic customers and product mix and benefited from favourable foreign exchange rates.
“During the quarter we also successfully commissioned and integrated Stage 1 of the Mt Weld Expansion project (dewatering circuit) into operations. These are significant milestones for our Lynas 2025 growth plan and it is pleasing that both are now part of normal operations”
Arafura Rare Earths
The Federal Government is investing a further $200 million in developing Arafura’s Nolans project in the Northern Territory, which will include a mine, processing plant and related infrastructure.
Once in production, Arafura anticipates Nolans will supply up to four per cent of the world’s demand for neodymium and praseodymium.
“This is indeed a significant day for Arafura and the Nolans project,” Arafura managing director Daniel Cuzzubbo said.
“This deal has been months in the making and de-risks the equity funding required for the development of Nolans.”
The funding, which comes from the National Reconstruction Fund Corporation (NRFC), tips the total investment from Federal coffers over $1 billion.
“Rare earth minerals are strategically important resources that are crucial to modern economies and the global transition to net-zero,” NRFC chairman Martijn Wilder said.
“Arafura’s Nolans project demonstrates the enormous contribution that Australia can make to the global supply of rare earth minerals and the considerable opportunities for Australia to add value to the raw materials that it mines.”
