Lynas committed to boosting investment in R&D

KUANTAN: Lynas Malaysia will commit to increasing its existing research and development investment to remove naturally-occurring radioactive material (NORM) from residues under its updated operating licence.

Australian rare earth materials producer Lynas Rare Earths said its wholly-owned Malaysian subsidiary would increase its R&D investment in Malaysia from 0.5% to 1% of Lynas Malaysia’s gross sales.

“The R&D programme will be overseen by the Atomic Energy Licensing Board and directed towards developing methods for removal of NORM from residues.

“Lynas will manage the R&D investment funds and dedicate senior scientists to progress developments alongside researchers from leading Malaysian institutions,” the company said in a statement following the announcement that Lynas Malaysia had been issued with a variation to its operating licence.

The updated licence allows the continued importation and processing of lanthanide concentrate from Lynas’ Mt Weld mine in western Australia at Lynas Malaysia facility, valid until Mar 2, 2026.

“Lynas will proceed with capital works to expand downstream separation capacity to about 10,500 tonnes per annum of neodymium-praseodymium.

“Tie-in works for the downstream separation capacity uplift are expected to be completed in December.

“We forecast lower production rates during the March 2024 quarter as the circuits stabilise in the new format. During the March quarter, Lynas expects maximum production rates of about 300 tonnes per month growing to 750 tonnes per month in the June 2024 quarter,” it said.

Lynas chief executive officer and managing director Amanda Lacaze lauded the decision, saying it would provide a strong foundation for rare earths’ industry development in Malaysia.

“As the leading producer of rare earths outside of China, Malaysia plays an important role in the global rare earths supply chain.

“We deeply value our people and communities in Malaysia who recognise that Lynas Malaysia is an excellent employer and a safe and responsible community member in over 10 years of safe operation,” she said.

Lacaze also said Lynas has invested over RM3bil in Malaysia over the past 12 years and contributed over RM4.8bil to the country’s GDP.

“We look forward to continuing to contribute to the development of the rare earths industry in Malaysia,” she said.