(Reuters) -Australia’s Lynas Rare Earths indicated rising demand for heavy rare earth oxides sourced outside China as it announced a new separation facility in Malaysia on Wednesday.
Lynas, the world’s largest rare-earth producer outside China, said the project would cost about A$180 million ($116.96 million) and will have the capacity to separate up to 5,000 tonnes per annum of heavy rare-earth feedstock.
“Market demand for heavy rare earths is high and Lynas can be selective in where, and at what price, we sell heavy rare earth oxides,” said CEO Amanda Lacaze.
Feedstock will be supplied from Lynas’ Mt Weld operations in Western Australia as well as other developing sources.
The timeline for the project’s construction is subject to regulatory approvals, the company said.
Lynas said it is currently in discussions with various offtake partners to secure deals for the expanded range of products at fair prices.
Shares of the company extended declines for the fourth consecutive session, slipping more than 1% to A$15.63 as of 2345 GMT after reports of a possible delay in Chinese rare earths curbs.
($1 = 1.5389 Australian dollars)
(Reporting by Sneha Kumar in Bengaluru; Editing by Anil D’Silva and Alan Barona)
