Australian rare earths miner Lynas Corp posted a 50% jump in annual profit on Thursday amid record production of major rare earth elements but the company said most of its growth will be outside China.
Lynas, the largest rare earths producer in the world outside of China, said profit after tax was A$80 million ($54.03 million) for the year ended June 30, up from A$53.1 million a year ago.
There has also been growing concerns since May that China may use its dominant position in the supply of rare earths as a tool in its trade war with the United States that has hurt domestic demand in China.
In June, Lynas said it was stockpiling neodymium and praseodymium (NdPr), used in industrial magnets, for "strategic customers".
The Australian miner said it produced 5,898 tonnes of NdPr over the year, up from 5,444 tonnes. Rare Earth Oxide production came in as 19,737 tonnes, a jump from 17,753 tonnes.
Rare earths are a group of 17 minerals found in fighter jets, tanks and high-tech consumer electronics.
This month, Malaysia renewed Lynas' operating license for a rare earths processing plant for six months but gave the miner four years to build a plant that will remove low-level radioactivity from the material it ships to the Southeast Asian nation.
($1 = 1.4806 Australian dollars) - Reuters