SYDNEY: Shares in Australian miner Lynas Rare Earths surged Wednesday (March 11) after the firm struck a major supply deal with Japanese customers for minerals that are crucial to an array of new technologies.
Lynas, the world's biggest producer of separated rare earth materials outside China, jumped 13.8 per cent in Sydney.
Rare earths are a key ingredient in products ranging from smartphones to fighter jets, electric cars and wind turbines, and China is by far the world's biggest producer.
Lynas said Tuesday it had extended an agreement to supply Japanese industry with rare earth metal neodymium-praseodymium (NdPr), which is used to make permanent magnets for highly efficient machinery.
The Australian miner said it included a commitment to buy at least 5,000 tonnes of NdPr a year until 2038, with an agreed floor price.
Lynas said it also would make available 75 per cent of all its heavy rare earth oxides to Japanese industry, which was represented by partly government-owned Japan Australia Rare Earths.
"This new agreement will ensure continued reliable supply of rare earth products that are strategically important to Japanese industry and its global market," Lynas chief executive Amanda Lacaze said in a statement.
"At the same time, the implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations." - AFP
