Lynas Rare Earths produces first samarium
Lynas Rare Earths (ASX: LYC) has produced its first samarium oxide from its plant in Malaysia, becoming the only non-Chinese producer of the mineral.
This expands Lynas’ range of separated heavy rare earth oxide products to three, alongside dysprosium and terbium, which it began producing last summer.
The latest milestone further enhances the company’s position as the only commercial producer of separated heavy rare earths outside China, the Australian miner said in a press release on Thursday.
Samarium oxide is highly sought after by customers for use in high-performance magnets for electronics and aerospace, as well as optical, catalyst and medical applications, it added.
Of note, the first samarium oxide production was initially expected in April after Lynas announced an expansion of its Malaysian plant. The expansion, with an estimated cost of about A$180 million, would result in an increased capacity to separate up to 5,000 tonnes per annum of heavy rare earth feedstock.
As Lynas previously detailed, the processing capacity will be progressively added, with the capacity for the initial suite of separated heavy rare earths expected to be available within two years. The initial flowsheet would include samarium, gadolinium, dysprosium, terbium, yttrium and lutetium, the company said.
Investment in further flowsheet enhancements to produce additional products, in particular europium,
holmium, ytterbium and erbium, will be considered based on commercial agreements that provide an
appropriate return on the additional investment, it added.
“The achievement of first Samarium oxide, on spec and ahead of schedule, is a significant milestone for
Lynas and demonstrates the expertise and capability of our inhouse team which is unique outside China,” Lynas’ CEO and managing director Amanda Lacaze stated in the press release.
Earlier this week, Lynas signed a binding letter of intent with the US government that would see the company supply light and heavy rare earth oxide products to the Department of War over a four-year period.
Shares of Lynas dipped 2.2% at market close in Sydney on Friday, for a market capitalization of A$19.7 billion. For the year, the stock has gained almost 60%.